US widens sanctions waiver to allow purchase of Russian oil stranded at sea

The United States has announced a temporary authorisation allowing countries to purchase Russian oil shipments currently stranded at sea, as Washington attempts to contain rising global oil prices amid its ongoing conflict with Iran.

The measure, announced by the United States Department of the Treasury, is intended to ease supply pressures in global energy markets following the surge in prices since the outbreak of hostilities on 28 February.

In a statement posted on X, US Treasury Secretary Scott Bessent said the step was aimed at supporting market stability while confronting security concerns linked to Tehran.

“Donald Trump is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime,” Bessent wrote.

Earlier this month, Washington issued a 30-day sanctions waiver permitting India to purchase Russian crude oil, despite the wide-ranging restrictions imposed on Russia over the war in Ukraine.

The new authorisation expands that approach, allowing other countries to buy Russian oil cargoes that are already in transit but have been unable to reach buyers due to sanctions-related restrictions.

Bessent described the measure as a “narrowly tailored, short-term” step that applies only to oil shipments already at sea. He said the arrangement would not significantly benefit the Russian government, noting that most of Moscow’s energy revenue comes from taxes levied at the point of extraction rather than from shipping.

He also pointed to the administration’s domestic energy policies, saying they had driven US oil and gas production to record levels.

“President Trump’s pro-energy policies have driven US oil and gas production to record levels, contributing to lower fuel prices for hardworking Americans,” Bessent said. He added that the recent rise in oil prices represented a temporary disruption that would ultimately bring long-term benefits to the US economy.

Oil markets have been closely watching the developments, as the conflict involving Iran and ongoing sanctions on Russia continue to reshape global energy supply dynamics.

With PTI inputs