In a complex geopolitical and economic landscape, India finds itself at a crossroads, navigating the delicate balance between its energy needs and international relations. The recent imposition of 50% tariffs on Indian goods by the United States, framed as a punitive measure for India’s continued purchase of Russian oil, has escalated tensions. US President Donald Trump’s assertion that Indian Prime Minister Narendra Modi privately agreed to cease these purchases ‘within a short period of time’ has further complicated matters. However, both Russia and India have distanced themselves from these claims, with Russia emphasizing the economic benefits of its oil for India, and India reaffirming its import policy as consumer-centric in a volatile energy market. India, the world’s third-largest oil importer, has significantly increased its reliance on Russian crude, which now constitutes 37% of its oil imports, driven by substantial discounts post-Western sanctions. This shift has come at the expense of imports from other traditional suppliers like Iraq, Saudi Arabia, and the UAE, as well as from the US, Brazil, and others. The economic rationale for India’s pivot to Russian oil is clear: it has saved the country approximately $5 billion annually, or 3–4% of its crude import bill. However, the strategic implications are profound. India’s refineries are optimized for heavier crude grades like Russia’s Urals blend, making a switch to lighter US shale oil costly and inefficient. The ongoing geopolitical tensions and the delayed India-US trade deal underscore the high-stakes nature of India’s energy policy decisions. As Washington tightens its grip, India must weigh the short-term economic benefits of discounted Russian oil against the potential long-term costs of strained bilateral relations with the US. The outcome of this balancing act will not only shape India’s energy strategy but also define the future trajectory of its international partnerships.