Tensions between India and the United States have flared once again over India's continued oil trade with Russia, as US Secretary of State Marco Rubio described it as a "point of irritation" in their otherwise strong partnership.

His remarks come just a day after US President Donald Trump announced plans to impose 25% tariffs on Indian goods, along with an additional, unspecified penalty in response to India's purchases of Russian oil and weapons.

In an interview with Fox News Radio on Thursday, Rubio called India a “strategic partner” and “ally,” but warned that Delhi’s ties with Moscow are putting pressure on relations with Washington. "I think what you're seeing the President express is the very clear frustration that with so many other oil vendors available, India continues to buy so much from Russia," Rubio said.

Russia supplied between 35% and 40% of India’s oil imports in 2024 — a major increase from just 3% in 2021.

India has defended its decision, saying it has a responsibility to protect millions of its citizens from rising fuel costs by purchasing cheaper oil.

India began buying more Russian crude after the Ukraine war began, a move influenced by Western sanctions that made Russian oil available at lower prices.

Rubio acknowledged the reasoning behind India’s energy choices, saying the country has major energy needs and is drawn to Moscow due to discounted rates. Still, he argued that these purchases indirectly support Russia’s war in Ukraine.

The situation escalated after Trump’s recent remarks on social media.

On Wednesday, he posted on Truth Social that he didn’t care how India and Russia handled their relationship, writing, “They can take their dead economies down together, for all I care.”

Russia responded quickly. On Friday, the Deputy Chairman of Russia's Security Council, Dmitry Medvedev, replied with a pointed message that alluded to Cold War nuclear strategy.

“As for the talk about the 'dead economies' of India and Russia, and 'entering dangerous territory' – maybe he should recall his favourite movies about 'the walking dead,' and also remember how dangerous the so-called 'Dead Hand,' which doesn't even exist, could be,” Medvedev wrote on Telegram.

The 'Dead Hand' was a Soviet-era nuclear system said to launch missiles without human input if it detected a nuclear attack.

Meanwhile, there are signs that India’s oil trade with Russia may already be shifting. Reuters has reported that Indian state-owned refineries — including Hindustan Petroleum, Bharat Petroleum, Mangalore Refinery Petrochemical, and Indian Oil — have stopped importing Russian crude in the past week due to declining discounts.

HSBC Global Investment Research also noted a visible drop in India's Russian oil imports for July.

India’s petroleum ministry has denied instructing refiners to stop buying Russian oil. However, last month, Petroleum Minister Hardeep Singh Puri said India could rely on other suppliers if sanctions disrupted Russian deliveries.

He added that the number of countries supplying oil to India had increased from 27 to about 40.

Despite these adjustments, market analysts say that any shift away from Russian oil is unlikely to cause much disruption to India’s current account.

According to CareEdge, the price gap between Russian Ural crude and Brent crude has narrowed to just $3 a barrel, down from an average of $20 in 2023.

India has not officially responded to Rubio’s comments.

But the rising public tensions reflect growing pressure from Washington on New Delhi to scale back its energy and military ties with Moscow, as the US looks to isolate Russia over its ongoing invasion of Ukraine.