India has drawn a firm line with Donald Trump’s administration over Russian oil. According to Bloomberg, Indian officials visiting Washington this week made it clear: if New Delhi is forced to cut off cheap Russian oil, it must be allowed to source barrels from Iran and Venezuela.
India rejects a “triple ban”
The delegation stressed that eliminating all three major suppliers – Russia, Iran, and Venezuela – would severely disrupt India’s energy supply chain and trigger a spike in global oil prices.
This warning came just days after the Trump White House slapped India with steep tariffs in retaliation for continuing Russian imports. Yet sanctions have not stopped the trade – they’ve only made it more expensive.
India, which imports nearly 90% of its oil needs, argues it cannot risk an energy crisis. Iranian and Venezuelan oil, much like Russian crude, is offered at heavy discounts. In July, Indian refiners paid an average of $68.90 per barrel for Russian oil – nearly $9 cheaper than Saudi crude and $5 less than U.S. deliveries.
Trump pressures Turkey too
Donald Trump isn’t focusing solely on India. At a White House press event, he urged Turkish President Erdogan to halt Russian oil purchases as well, reportedly offering access to F-35 fighter jets in exchange.
Trump argued that cutting off Kremlin revenues would weaken Moscow and help Ukraine win the war. But analysts caution that pushing allies without offering viable alternatives risks destabilizing global markets and sending prices soaring.
OPEC+ falls short, market remains tight
The pressure comes as OPEC+ struggles to meet its own production targets. Since April, the group has fallen short by roughly 500,000 barrels per day – about half a percent of global demand.
Even with countries like the UAE cleared to raise output, the collective still lags behind. For India, this means one thing: the oil market remains volatile, and every new U.S. decision could rewrite the rules of the game.
India is now putting Trump in a corner: if Russian oil must be cut, Washington must unlock barrels from Tehran and Caracas. Otherwise, the world should brace for another oil price shock.
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