Global oil prices reversed course dramatically on Friday, shedding gains accumulated over the past week following the ignition of Israel-Iran hostilities. The surge had pushed crude up over 15%, but relief arrived with news of a US-granted 30-day exemption allowing Indian refiners to offload stranded Russian shipments.
Intercontinental Exchange data showed April Brent crude contracts sliding 1.52% to $84.21 per barrel. Simultaneously, WTI crude dropped 2.10% to $79.31 in initial trades, signaling a broader market unwind.
This policy pivot by Washington addresses mounting anxieties over the Strait of Hormuz, where Iranian threats loomed large. By permitting purchases of oil already in transit, the waiver mitigates immediate supply chain pressures without bolstering Moscow’s coffers, as clarified by Treasury chief Scott Bessent.
India’s energy landscape hangs in the balance here. Reliant on imports for 90% of its 5.5 million barrels-per-day demand, the nation sourced a record 1.04 million barrels daily from Russia last February, per Kepler tracking data—eclipsing supplies from Saudi Arabia (1 million bpd) and Iraq (980,000 bpd). Disruptions via Hormuz, which funnels 15-20% of imports, could spell disaster.
US officials, including the White House, have hinted at military safeguards like tanker escorts to secure this vital artery. Experts view the exemption as a pragmatic step toward stabilizing volatile energy dynamics, with potential for ripple benefits across Asia’s refining hubs. Markets now pivot to geopolitical tea leaves for the next move.