U.S. Issues Waiver Allowing Sale Of Russian Oil Amid Iran War

The United States has issued a 30 day waiver allowing countries to purchase sanctioned Russian oil and petroleum products currently stranded at sea, a move Treasury Secretary Scott Bessent described as a step to stabilize global energy markets roiled by the Iran war.

The license, announced Thursday, permits 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. The announcement came as oil prices eased in Asia following the waiver.

The decision reflects White House concerns that rising oil prices, following U.S. and Israeli strikes on Iran, could hurt American businesses and consumers ahead of the November midterm elections.

Bessent, in a statement on X, said the measure is “narrowly tailored” and “short-term” and added that it would not provide significant financial benefit to the Russian government.

He stated, “The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term.”

The waiver follows the U.S. announcement on Wednesday that 172 million barrels would be released from the strategic petroleum reserve, part of a larger 32 nation International Energy Agency commitment to release 400 million barrels to help ease disruptions caused by the conflict in the Middle East.

The IEA has said that the Iran war is producing the biggest oil supply disruption in history.

According to reports, there were approximately 124 million barrels of Russian origin oil on water across 30 locations globally as of Thursday.

Analysts estimate the U.S. license will provide roughly five to six days of supply, taking into account daily losses from the Strait of Hormuz.

While the temporary waiver is expected to ease global oil supplies, it may also complicate Western efforts to limit Russian revenue from the war in Ukraine and could put Washington at odds with its allies.