Finance
Oil falls as US may intervene in futures market, issues waiver for Russian purchases
Published by Global Banking & Finance Review®
Posted on March 6, 2026
3 min readLast updated: March 6, 2026
Quick Summary
Oil prices slipped—Brent fell ~1.3% to $84.27, WTI dropped ~1.8% to $79.55—as the U.S. mulls an unprecedented futures‑market intervention and issued 30‑day waivers allowing Indian refiners to buy Russian crude stuck at sea, easing supply fears amid the Iran‑Israel conflict.
Oil Prices Drop as US Weighs Market Intervention and Allows Russian Purchases
US Actions and Market Response to Middle East Conflict
By Helen Clark
Oil Price Movements
PERTH, March 6 (Reuters) - Oil fell for the first time in six days as the U.S. government is considering potentially intervening in the futures market to blunt rising prices and has given waivers to Indian refiners to buy Russian crude to ease supply constraints from the Middle East war.
Brent crude futures were down $1.14, or 1.33%, to $84.27 per barrel and West Texas Intermediate down $1.46, or 1.8%, to $79.55 as of 0251 GMT.
Impact of Middle East Conflict
The U.S. has taken the steps to ease the surge in prices after it, along with ally Israel, started a military conflict with Iran on February 28 that has halted tankers from moving through the Strait of Hormuz, which typically carries roughly one-fifth of the world's daily oil supply, shut refineries and oil output and shuttered liquefied natural gas plants in the key Middle East energy-producing region.
In the previous four trading sessions since the war started, Brent has climbed 18% while WTI has gained 21%.
US Government Measures
Potential Market Intervention
A senior White House official said on Thursday, the U.S. Treasury Department is expected to announce measures to combat rising energy prices from the Iran conflict, including potential action involving the oil futures market, without providing any details.
Unusual Financial Market Action
The potential move would mark an unusual attempt by Washington to influence energy prices through financial markets rather than physical oil supplies.
Waivers for Russian Oil Purchases
To ease physical supply constraints, which have caused refineries, especially in Asia, to start reducing their fuel processing, the Treasury also granted waivers for companies to start buying sanctioned Russian oil stored on tankers.
The first waivers were given to Indian refiners who have responded by buying millions of barrels of prompt Russian crude oil cargoes, sources said, reversing months of pressure on them to halt the purchases.
Analyst Perspectives
Analysts cautioned that the recent gain in prices is relatively subdued compared to other price shocks, particularly after the full-scale Russian invasion of Ukraine in 2022, when prices rose above $100 a barrel.
Market Context
“While panic around surging oil prices appears to be spreading beyond market circles, it’s important to put this move into perspective: despite crude’s almost 20% surge this month, the price is currently just $3.40 above its average over the last four years,” IG analyst Tony Sycomore wrote in a note.
(Reporting by Helen Clark; Editing by Christian Schmollinger)
Key Takeaways
- •U.S. considering a rare intervention in oil futures markets to dampen rising prices amid Middle East conflict
- •Temporary 30‑day waivers granted to Indian refiners to buy Russian crude stranded at sea, helping alleviate supply constraints
- •Despite recent volatility, oil remains modestly elevated—only about $3.40 above its four‑year average, per analysts
Frequently Asked Questions about Oil falls as US may intervene in futures market, issues waiver for Russian purchases
1Why did oil prices fall for the first time in six days?
Oil prices dropped as the US considered intervening in the futures market and issued waivers for Indian refiners to buy Russian oil amid Middle East supply disruptions.
2What actions has the US government taken in response to rising oil prices?
The US government is considering action in the oil futures market to blunt price rises and has granted waivers allowing Indian companies to buy sanctioned Russian oil.
3How has the Middle East war affected global oil supply?
The conflict has halted tankers at the Strait of Hormuz, shut refineries and LNG plants, and constrained oil supply from the region.
4Who received the first US waivers to buy Russian crude oil?
Indian refiners received the first waivers and responded by purchasing millions of barrels of Russian crude.
5How do recent oil price increases compare to past shocks?
Recent gains are more subdued than the 2022 surge after Russia's Ukraine invasion, with prices only slightly above the four-year average.