Washington, United States. The United States issued a 30-day waiver allowing countries to buy sanctioned Russian oil and petroleum products stranded at sea, a move Treasury Secretary Scott Bessent said aimed to stabilize global energy markets roiled by the Iran war.
Waiver details and timing
The license issued on Thursday authorizes the delivery and sale of Russian crude oil and petroleum products loaded on vessels as of March 12 and is valid through midnight Washington time on April 11, according to the text posted on the Treasury Department’s website.
Market reaction and regional disruptions
Oil prices eased on Friday morning in Asia after the U.S. waiver announcement.
The waiver followed nearly two weeks of U.S. and Israeli strikes on Iran and a response by Tehran that widened regional tensions and paralyzed shipping through the Strait of Hormuz, disrupting Middle East oil and gas flows and pushing energy prices higher.
Strategic reserve release and IEA action
On Wednesday, Washington announced it would release 172 million barrels of oil from the strategic petroleum reserve to curb oil prices after the war in Iran. The release was part of a broader commitment by the 32-nation International Energy Agency to release 400 million barrels of oil.
The IEA said earlier on Thursday that the war in the Middle East was creating the biggest oil supply disruption in history.
Administration rationale and Bessent’s statement
The move reflects White House concerns that higher oil prices could affect U.S. businesses and consumers ahead of the November midterm elections, when Republicans hope to retain control of Congress.
In a statement on X released hours after benchmark oil prices rose above $100 a barrel, Bessent said the measure was “narrowly tailored” and “short-term” and would not provide significant financial benefit to the Russian government. He also said the temporary increase in oil prices was a short-term disruption that would result in a long-term benefit to the nation and economy, echoing President Donald Trump.
Russian oil volumes at sea
Fox News reported there were about 124 million barrels of Russian-origin oil on water across 30 locations globally as of Thursday, adding that the U.S. license would provide around five to six days of supply when accounting for the daily loss of oil from the Strait.
How do you think the waiver will affect oil prices over the next month?
