The Power of Oil: How Energy is Shaping US Relations with Russia and India

The immense power of oil is on full display, as it simultaneously shapes US relations with both Russia and India in dramatically different ways. For one, it is a tool of punishment; for the other, it is an instrument of negotiation.
With India, oil is the justification for a trade war. The country’s decision to import Russian oil has led to the imposition of 50% tariffs by the Trump administration, a clear use of economic muscle to enforce a foreign policy preference.
With Russia, oil is the centerpiece of a diplomatic gambit. The prospect of renewed investment in Russia’s oil sector, symbolized by the potential return of Exxon Mobil, is being used as a key incentive to encourage peace talks over Ukraine.
This dual use of energy as both a weapon and a bargaining chip highlights its central role in modern geopolitics. The flow of oil is not just an economic issue but a powerful force that can forge alliances, create conflicts, and reshape the international order.