A pair of Democratic lawmakers are demanding the Treasury Department reverse a waiver allowing India to buy Russian oil – arguing the move provides “material benefit to the enemy” amid reports the Kremlin is aiding Iran.
In a letter sent Monday to Treasury Secretary Scott Bessent, Rep. Sam Liccardo (D-Calif.) and Sen. Ruben Gallego (D-Ariz.) blasted the Trump administration for last week issuing a 30-day waiver that allowed India to temporarily resume purchases of Russian oil.
“Your recent decision to provide a 30-day waiver is dangerous, self-defeating, and indefensible,” Liccardo and Gallego wrote in a copy of the letter obtained by The Post. “This waiver constitutes an inexplicable act of material benefit to the enemy.”
The temporary waiver is a sharp reversal from the US government’s earlier stance, which saw it briefly slap a 25% tariff on India as punishment for buying energy from Moscow – but authorities argued the exemption was necessary as the Strait of Hormuz crisis disrupts global oil supplies.
Iran has cut off access to the vital maritime route, which transports 20% of the world’s oil supply – sending oil prices surging above $100 a barrel and national average gasoline prices to $3.48 a gallon on Monday, according to AAA.
Bessent said the temporary waiver would not provide “significant” benefits to Russia, but would instead help stabilize oil prices as Tehran bottlenecks the key waterway.
“This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea,” he said in a post on X last week.
The Russian government generates most of its energy revenues from taxes imposed on oil when it is first extracted from the ground, not when it is delivered to buyers, a source familiar with the situation told The Post.
The Treasury Department did not immediately respond to The Post’s requests for comment.
After the US issued the temporary waiver, Iran’s foreign minister confirmed that Russia has been aiding Tehran in “many different directions” in its war with the US and Israel – just days after speculation that Moscow was passing along intelligence about the location of US forces.
Gallego and Liccardo blasted the temporary lifting of sanctions, arguing it rewards Russia monetarily even as it aids Iran in targeting US troops throughout the Middle East, as earlier reported by CNBC.
“Rather than performing the necessary contingency planning that would keep India and other allies supplied with alternative sources, the Administration’s hapless approach has allowed Russia and other adversaries to profit from oil reserves previously constrained by sanctions, supporting Russian efforts to harm US troops and thwart US intelligence,” the lawmakers wrote in the letter.
“By providing this waiver, you have signaled that the United States will reward attacks on our troops, not deter them.”
The surge in oil prices – which briefly topped $120 earlier Monday – comes less than eight months ahead of the 2026 midterms and could threaten the GOP’s attempts to address affordability concerns among Americans.
Trump promised to ease inflation during his campaign, including prices at gas pumps, but his approval ratings on the economy have tanked as prices remain high and the combination of tariffs and the conflict in Iran fuel economic anxiety.
Liccardo and Gallego – who are members of the House Financial Services Committee and Senate Banking Committee, respectively – argued the war in Iran will only worsen the affordability crisis.
“A prolonged conflict with Iran and wider military operations throughout the Middle East will only deepen the energy cost-crisis, burdening Americans to pay more at the pump, and exacerbating the affordability crisis facing too many Americans,” they wrote.
Energy Secretary Chris Wright has defended the temporary exemption on Russian oil sales, arguing it could temporarily relieve price pressures and divert oil shipments to China.
“We’re not helping Russia by just accelerating the sale of their oil to stop the rise of energy prices and keep European and Asian refineries in oil,” Wright told CBS’ “Face the Nation” on Sunday.
“We’re just doing pragmatic things to get through a short period that’ll bring in an era of even lower energy prices.”
On reports that Russia has been sharing intelligence with Iran, Wright said the government doesn’t know “if that’s true or not,” though he added that “Russia is an expert at causing trouble around the world.”
Though economists have warned that energy shocks tend to ripple across consumer prices during prolonged conflicts, Wright promised that gas prices will dip below $3 a gallon “again before too long” during an appearance on CNN’s “State of the Union” Sunday.
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