US Refusal to Extend Waivers on Russian Crude Oil Purchases Sparks Fears of Another Oil Shock

New Delhi: Amid turmoil in the global energy market, the world, including India, fears another oil shock. Bloomberg reports that the Donald Trump administration has refused to extend a temporary waiver of sanctions on purchases of Russian crude oil. The waivers now expire after the May 16 deadline. The waivers come as a major blow to countries like India and Indonesia that rely on cheap Russian oil for energy security amid the ongoing war in West Asia (Middle East). The ongoing Iran war in West Asia and the blockade of the Strait of Hormuz have impacted global crude oil supplies. In order to contain the crisis and keep oil prices in check in the international market, Washington first granted a special waiver in March to allow purchases from Russian oil tankers that were already loaded. Later, under pressure from the US Department of Imports, the waivers were granted in April.