The U.S. has granted a 30-day license for countries to purchase Russian oil and petroleum products currently stranded at sea, aiming to stabilize global energy markets affected by the Iran conflict, according to Treasury Secretary Scott Bessent. This decision follows the U.S. Energy Department’s release of 172 million barrels of oil from the strategic petroleum reserve to mitigate surging oil prices. The International Energy Agency, comprising 32 nations, has committed to releasing 400 million barrels of oil in response to the unprecedented oil supply disruption caused by the conflict in the Middle East.
Bessent emphasized that the license is a temporary and narrowly tailored measure, stating it will not yield substantial financial gains for the Russian government. The increase in oil prices is deemed a short-term disruption that will yield long-term benefits for the nation and economy, echoing sentiments expressed by U.S. President Donald Trump.
Ukrainian President Volodymyr Zelenskyy criticized the move, suggesting it could generate billions in revenue for Russia and hinder peace efforts. The decision also drew concerns from Ukraine allies, with Trump previously criticizing European countries for their reliance on Russian energy sources.
Maintaining sanctions on Russia, including on oil shipments, remains a priority for Canada, as stated by Prime Minister Mark Carney during a joint news conference. German Chancellor Friedrich Merz expressed surprise at the U.S. government’s divergent stance on the issue, emphasizing the importance of economic pressure on Russia to facilitate negotiations for a lasting peace.
The U.S. Treasury has issued a license authorizing the delivery and sale of Russian oil and petroleum products loaded on vessels as of March 12, valid until April 11. This decision follows a previous 30-day waiver granted specifically to India for purchasing Russian oil stuck at sea.
In other efforts to address energy prices, the Trump administration is considering waiving the Jones Act to facilitate the movement of energy and agricultural products between U.S. ports. The administration also plans to boost domestic oil production and provide regulatory relief to lower costs further.
Approximately 124 million barrels of Russian-origin oil are reported to be at sea across 30 different locations globally, with the U.S. license expected to provide around five to six days of supply, factoring in daily oil losses. The Kremlin views the U.S. sanctions waiver on Russian oil as a collaborative effort to stabilize global energy markets, emphasizing the necessity of Russian oil volumes for market stability.
Trump highlighted the economic benefits for the U.S. from higher oil prices, drawing criticism for prioritizing financial gains over broader concerns. Regional tensions have escalated due to U.S. and Israeli actions against Iran, disrupting oil flows through the Strait of Hormuz and driving energy prices upward. Iran’s Revolutionary Guard Corps has threatened to block oil shipments from the Gulf in response to the ongoing conflict.