Tuesday, 02 January 2024 12:17 GMT

Trump Targets India's Energy Crisis with U.S. Oil, LNG Push


(MENAFN) The Trump administration is actively pursuing expanded energy sales to India — principally oil and liquefied natural gas — as New Delhi grapples with mounting supply disruptions stemming from the crisis in the Strait of Hormuz.

U.S. Ambassador Sergio Gor told media that India "has been receptive to diversification" of its energy import sources, a shift he said translates directly into "buying more American energy."

"People have been very receptive to buying from the United States, and we've been very happy with that," Gor said, according to media.

The remarks arrive just days ahead of a scheduled visit to New Delhi by Secretary of State Marco Rubio next week, adding diplomatic weight to what has become an intensifying energy courtship. Washington has long pushed India to wean itself off Russian oil — a campaign that has grown more assertive since Moscow became New Delhi's single largest energy supplier in 2022.

Earlier this year, the Trump administration levied punitive tariffs on Indian goods, explicitly tying them to India's continued trade with Russia. Those measures were subsequently lifted under a preliminary deal brokered between Trump and Indian Prime Minister Narendra Modi, which saw tariffs on Indian exports slashed from 50% to 18% in exchange for India curtailing Russian oil purchases. New Delhi, however, has stopped short of any public commitment to halt those imports, consistently maintaining that it will source energy from all available markets to safeguard its economy.

The pressure on India has intensified sharply in recent weeks. Ongoing disruptions to shipping through the Strait of Hormuz, a direct consequence of the U.S.-Israeli war against Iran, have forced New Delhi to weigh difficult contingency measures — including potential fuel price increases and curbs on non-essential spending — to protect its foreign exchange reserves against surging oil costs.

Asked directly whether the United States bore responsibility for those disruptions, Gor deflected, placing the blame squarely on Tehran for closing the strait. "The blame is not on the United States," he told media, while noting that the U.S. Treasury Department had granted India a carve-out allowing it to continue purchasing Russian oil that would otherwise fall under American sanctions.

The stakes for India are considerable. As the world's third-largest oil buyer — importing roughly 85% of its total petroleum needs — the country remains acutely exposed to both price shocks and any sustained interruption to Strait of Hormuz transit routes.

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