US told allies further oil sanctions easing would focus on India

Oil production cuts in the Middle East are deepening as the crucial Strait of Hormuz waterway remains at a near-standstill

• US may loosen Russian oil sanctions mainly for supplies to India
• India granted waiver to import Russian oil currently at sea
• G-7 ready to release oil reserves if needed amid Iran conflict

Did our AI summary help?

The US has indicated to European allies that any further loosening of sanctions on Russian oil would be mostly limited to supplies to India, according to people familiar with the matter.

President Donald Trump suggested on Monday that he could remove “certain oil-related sanctions to reduce prices,” but didn’t offer additional specifics beyond acknowledging he had discussed the topic with Russian President Vladimir Putin in a phone call earlier the same day. The US has already granted a waiver for India to import Russian oil that is at sea.

In a call between Group of Seven finance ministers on Monday, the US emphasized that the India decision was “very much contained both in terms of time and scope of the measures,” said European Union Economy Commissioner Valdis Dombrovskis.

“They do not expect substantial impact of this on Russian oil revenues,” Dombrovskis said at a press conference on Monday evening, after earlier joining the G-7 call.

The US stressed that any additional relaxation of sanctions would be similarly tailored, said the people familiar, who spoke on condition of anonymity. They also cautioned that any final decision was for Trump to make.

Oil production cuts in the Middle East are deepening as the crucial Strait of Hormuz waterway remains at a near-standstill. The shutdowns drove oil toward $120 a barrel on Monday.

Trump on Monday said the US and Israel were making significant progress in their war on Iran and could end the conflict “very soon,” curtailing the oil-price surge.

But as the war drags on, the G-7 nations said Monday they stood ready to release strategic oil reserves if needed. However, some member nations believe the conditions for such a release have not been reached yet, the people familiar said.

G-7 leaders may hold a call later this week to discuss the war in Iran.