Trump Signs Tough New Sanctions on Russia and Iran – What It Means for India’s Oil Imports

Washington made a splash on Tuesday when President Donald Trump put his signature on the Lindsey Graham Sanctioning Russia and Iran Act of 2026. The bill, now law, hands the White House the power to slap tariffs — up to a staggering 100% — on any country that continues to import Russian crude oil or gas.

It’s a bold move, and it instantly shifts the spotlight onto the two biggest buyers of Russian energy: China and India. Data compiled between December 2022 and August 2026 show China snapped up roughly half of Russia’s crude exports, while India accounted for about 37 %. Together, they consume more than three‑quarters of what Russia ships abroad.

That doesn’t automatically mean a hundred‑percent duty will hit Delhi or Beijing tomorrow. The act simply grants the president the authority to act; the actual level, timing and scope of any tariff will depend on how the administration chooses to proceed.

Beyond the tariffs, the legislation casts a wide net. It targets Russian political elites, state‑linked enterprises, banks, and even vessels that belong to the so‑called “shadow fleet” – a fleet of ships that help Russia evade existing sanctions. On the Iranian side, the law adds new restrictions aimed at Tehran’s energy and weapons sectors.

India has repeatedly said its energy choices are driven by security and economic imperatives. New Delhi’s officials argue that the country must secure enough oil to keep the lights on and the factories humming, especially as domestic demand climbs.

So what’s at stake? If Washington decides to move forward with the maximum tariff, the cost of Russian oil for India could double overnight, reshaping trade flows and potentially pushing India to look harder at alternative suppliers – perhaps boosting purchases from the United States, the Middle East or even exploring more renewable options.

For China, the stakes are similarly high. A heavy duty could nudge Beijing toward faster diversification, maybe accelerating its push for domestic energy development and stronger ties with other oil‑rich partners.

In the bigger picture, the new law deepens the geopolitical rift between Washington and Moscow, while also tightening the squeeze on Tehran. Analysts say the move signals that the United States is prepared to use economic levers more aggressively to counter what it sees as destabilising behaviour by Russia and Iran.

Whether the tariffs will ever be applied at the full 100 % level remains to be seen, but the mere possibility is enough to send ripples through global energy markets. Traders are already watching closely, and governments are scrambling to reassess their strategies before any official decree lands on the desk.

In short, the world is watching: the United States has laid down a new set of rules, and the next few weeks could determine how those rules reshape the balance of power in the oil market and beyond.