Oil markets exhaled collectively Friday as prices cratered, unwinding a brutal 15% rally ignited by Israel-Iran clashes. Driving the reversal: a timely US waiver granting Indian refineries 30 days to buy Russian crude idling at sea amid Hormuz Strait jitters.
Benchmarks reflected the thaw—Brent April futures eased 1.52% to $84.21 per barrel on ICE, while WTI shed 2.10% to $79.31 early on. The decision diffused immediate panic over supply snarls in one of the world’s most treacherous shipping lanes.
US Treasury’s Scott Bessent detailed the scope: purely for oil already afloat, preserving global flows sans Russian enrichment. This nuanced approach underscores Washington’s balancing act in turbulent times.
For import-dependent India—gobbling 5.5 million barrels daily, 90% from abroad—the relief is tangible. February data from Kepler pegged Russia as top dog at 1.04 million bpd, edging Saudi Arabia (1 million) and Iraq (0.98 million). Hormuz routes 15-20% of this lifeline, amplifying the stakes.
Anticipating escalation, America eyes naval escorts for tankers. White House rhetoric ties anti-Iran actions to future energy equilibrium. With refineries breathing easier and speculators retreating, the waiver spotlights diplomacy’s role in taming commodity storms.