Oil Pric͏es Slip to͏ $84.46 But Log 16͏% ͏Weekly Surge Amid Iran W͏ar and͏ US Waiver for Russian C͏rude

Mum͏bai, ͏Ma͏rch, 6 ͏Oil prices edged l͏ower on Fr͏ida͏y͏ after six c͏onsecutive sessions o͏f gains as͏ th͏e͏ Uni͏ted States signalled possible intervent͏ion͏ in oil future͏s mar͏kets and tempor͏arily ea͏sed sanctio͏ns to͏ ͏all͏ow͏ purchases ͏of Russian c͏rude. The͏ ͏decline c͏omes even as global crude benchma͏rks͏ remai͏n on c͏ours͏e ͏fo͏r͏ their steepest week͏ly rally sinc͏e 2022, driven ͏by escalating c͏onflict in th͏e Middle East a͏nd disru͏ptions around th͏e Strait of͏ Ho͏rmuz, o͏ne of the world’s most critical͏ energy transit r͏outes.

Brent at $84.46, WTI at ͏$79.93 Despite 16–19% Week͏ly Rally

Glob͏al oil ben͏ch͏marks sl͏ipped in early tradi͏ng͏, with Brent crud͏e futures falling $͏0͏.95͏,͏ or 1.͏1%,͏ to $84.46 per barrel, w͏hile Wes͏t T͏exas Inte͏rm͏ediate (WTI͏) ͏declined $1.08, o͏r 1.3͏%, to $͏79.93 per bar͏r͏el as of 0440 GMT.

Despite the da͏ily decli͏n͏e, crude ͏markets rem͏ain͏ sharpl͏y elevated o͏n a wee͏kl͏y basis.͏ Brent has surged 16.4% thi͏s w͏e͏ek,͏ wh͏ile WTI has climbed 19.2%, marking the largest week͏ly i͏nc͏rease͏ since February͏ 2022, whe͏n Russia launched its fu͏ll-scale in͏vasion of Ukrain͏e͏.

The sharp ͏gain͏s earlier in ͏the ͏week were͏ triggered by s͏upply disr͏uptions across th͏e Midd͏le E͏ast following the͏ outbreak of͏ conflict ͏inv͏olving the Un͏it͏ed S͏tates, Israel and Ir͏an.

Strait of Hormuz Disruption Threatens 20% of Global Oil Supply

Oil supply concerns intensified after the conflict, which began on February 28, halted tanker traffic through the Strait of Hormuz. The narrow maritime passage typically handles roughly one-fifth of the world’s daily oil supply, making it one of the most critical chokepoints in the global energy trade.

The conflict has expanded across major energy-producing regions in West Asia, disrupting crude output and forcing shutdowns at several refineries and liquefied natural gas plants. Analysts warned that prolonged disruptions could sharply tighten global supply.

According to market analysts, halted shipping in the strait has two immediate consequences: the inability to store up to 20 million barrels per day and a significant reduction in oil flows to international markets.

Recent tanker traffic data underscores the disruption. Only five oil tankers transited the Strait of Hormuz on March 1, compared with roughly 60 vessels per day previously.

US Considers Futures Market Action to Cool Energy Prices

Amid the rapid surge in crude prices, the US Treasury Department is considering measures aimed at stabilising energy markets, including potential intervention involving the oil futures market.

A senior White House official indicated that the move is intended to counter rising global energy costs triggered by the Iran conflict. If implemented, such action would represent an unusual attempt by Washington to influence oil prices through financial markets rather than physical supply releases.

The United States has previously relied on strategic petroleum reserves or supply measures, making potential futures market involvement a rare policy approach.

US Grants 30-Day Waiver for Russian Oil Purchases

In a separate move aimed at easing supply constraints, the United States granted a temporary 30-day waiver allowing companies to purchase Russian crude already stranded at sea.

The waiver permits transactions involving Russian-origin crude loaded on vessels before 12.01 AM Eastern Standard Time on March 5, 2026, according to the Office of Foreign Assets Control (OFAC) of the US Treasury.

The relaxation is designed to keep oil flowing into global markets while limiting financial benefits to Russia, as the permission applies only to cargoes already in transit.

Ship-tracking data from Kpler shows approximately 30 million barrels of Russian crude currently stored on vessels in the Indian Ocean, Arabian Sea and Singapore Strait, including volumes in floating storage.

Indian Refiners Buy Millions of Barrels After Waiver

Following the waiver announcement, Indian refiners began purchasing millions of barrels of Russian crude for prompt delivery, reversing months of pressure from Washington to reduce such imports after the Ukraine invasion.

According to industry sources, Indian state refiners have already purchased around 20 million barrels of Russian oil cargoes.

Russia had remained a major supplier to India in recent years. In February, Russian shipments averaged 1.04 million barrels per day (bpd), compared with 1 million bpd from Saudi Arabia and 980,000 bpd from Iraq.

However, Russian supplies to India have declined from 1.8 million bpd in November 2025 and 2 million bpd in July 2024, partly due to sanctions pressure and evolving trade arrangements.

Middle East Conflict Forces India to Diversify Supply

The ongoing conflict has heightened concerns for energy-importing economies such as India, which relies on imports for nearly 90% of its crude oil requirements.

India consumes roughly 5.5 million barrels of oil per day, with about 1.5–2 million barrels passing through the Strait of Hormuz. Overall, between 2.5 million and 2.7 million barrels per day of India’s oil trade is linked to this route.

Government officials have indicated that India is exploring multiple supply sources to maintain energy security, including discussions with global producers such as Russia.

India’s strategic petroleum reserves and inventories held by oil marketing companies are estimated to provide 74 to 90 days of supply, depending on consumption levels.

Oil Rally Still Below Previous Crisis Peaks

Although crude prices have surged nearly 20% this month, analysts note that the rally remains relatively moderate compared with previous shocks.

During the 2022 energy crisis, oil prices briefly surged above $100 per barrel following the Russia-Ukraine conflict. Current price levels remain only $3.40 above the average recorded over the past four years, according to market analysts.

The current volatility in global oil markets reflects supply disruptions caused by the West Asia conflict and restrictions around the Strait of Hormuz. Temporary policy measures by the United States, including a waiver for stranded Russian crude cargoes and potential market intervention, aim to stabilise supply flows. For major importing economies such as India, diversified sourcing and strategic reserves remain central to managing energy security during geopolitical disruptions.