The decision was announced by US Treasury Secretary Scott Bessent, who said the move will help stabilise crude prices which have skyrocketed due to the disruptions in the Strait of Hormuz, a key shipping route in the Persian Gulf.
At least seven tankers have changed course towards India as refiners rapidly increase Russian oil purchases amid supply concerns linked to Middle East tensions.
US military strikes on Iran have hit over 5,000 targets, the White House said, while Washington moves to protect energy shipments through the Strait of Hormuz amid rising tensions.
Washington has suggested India consider taking Russian crude cargoes currently waiting offshore for Chinese refineries as markets react to disruptions in Middle East shipping routes.
Amid the escalating conflict in Iran and the Gulf region, the United States has allowed a 30-day waiver for India to purchase Russian Oil to meet its energy requirements.
