The temporary measure is expected to cool global energy markets as crude prices continue to soar after US-Israeli attacks on Iran
The US has eased sanctions to allow countries to purchase Russian oil and petroleum products already loaded on vessels at sea, according to Treasury Secretary Scott Bessent. The move comes as escalating Middle East tensions triggered by the US-Israeli war on Iran have sent global oil prices soaring.
The US and Israel launched coordinated strikes on Iran on February 28, prompting Iranian retaliatory attacks across the region. The crisis has led to the de facto closure of the Strait of Hormuz – which carries roughly one-fifth of the world’s daily oil supply – as Iran effectively blocks transit for ships from non-friendly nations, sending oil prices surging nearly 50% to almost $120 per barrel.
“To increase the global reach of existing supply, US Treasury is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea,” Bessent said on Thursday in a post on X, stating that the move would stabilize energy markets and curb oil prices.
The waiver relates to exports of Russian oil loaded onto vessels prior to March 12 and is set to last 30 days.
Earlier in the day, US Energy Secretary Chris Wright had stated that broader restrictions on Russian oil would not be lifted, stressing that Washington was not planning to change its sanctions policy toward Moscow.
Commenting on the easing of restrictions, Kremlin spokesman Dmitry Peskov said the move is aimed at stabilizing the global energy market, adding that in this respect, the interests of Moscow and Washington align.
Last week, Bessent claimed the US had given India “permission” to buy Russian crude “to ease the temporary gap of oil around the world,” having announced plans to “unsanction other Russian oil” to further boost supply.
India, which alongside China emerged as a key buyer of Russian crude after sanctions were imposed following the escalation of the Ukraine conflict in 2022, has never confirmed it would adhere to the restrictions, although the US has claimed otherwise.
Moscow likewise said it had no information suggesting that India has put Russian crude imports on hold. The Kremlin has condemned the US-Israeli strikes on Iran as a “premeditated and unprovoked act of aggression” with no justification.
You can share this story on social media:
Read the full article here