Key points
- Shift aims to replace Iranian, Russian crude
- India has been major Russian oil importer
- US pushing energy ties amid sanctions pressure
WASHINGTON: US President Donald Trump has said India will purchase oil from Venezuela rather than Iran, signalling a potential shift in energy trade as Washington seeks to reshape global crude flows amid ongoing geopolitical tensions.
According to Reuters, Trump made the remarks on Saturday while speaking to reporters aboard Air Force One, saying that a deal had already been reached “in concept” for India to buy Venezuelan crude instead of relying on Iranian supplies.
The comments come as the United States intensifies efforts to redirect India’s oil imports away from sanctioned producers, particularly Russia and Iran. India has become one of the largest buyers of discounted Russian crude since Moscow’s invasion of Ukraine, taking advantage of lower prices despite Western pressure to reduce purchases.
Washington has repeatedly raised concerns that Russian oil revenues continue to fund the war in Ukraine. US officials have urged key importers, including India, to diversify supply sources and reduce dependence on Russian energy exports.
Venezuelan oil
Venezuelan oil has emerged as an alternative. The US recently informed Delhi it could soon resume purchases of Venezuelan crude, partly to replace Russian imports, reports Reuters.
Venezuela, home to the world’s largest proven oil reserves, has been under US sanctions for years, but limited exemptions have been considered to stabilise global markets.
Trump had previously imposed 25 per cent tariffs in March last year on countries purchasing Venezuelan oil, including India, reflecting the complexity of Washington’s approach to Caracas.
Trump also said China would be welcome to reach a similar arrangement with the United States to buy Venezuelan oil, suggesting broader efforts to control trade routes and reduce reliance on adversarial suppliers.
Analysts say any move by India towards Venezuelan oil would reflect the growing pressure on major economies to balance energy security with diplomatic and strategic considerations, as global oil markets remain heavily influenced by conflict, sanctions and shifting alliances.
