The U.S. Department of the Treasury announced Thursday evening it will temporarily authorize countries to purchase Russian oil already in transit by sea, a measure intended to contain rising crude prices spurred by the war against Iran and global energy supply disruptions.
Temporary Sanctions Relief
The special license issued by the Treasury authorizes the sale and delivery worldwide of Russian crude oil and petroleum products that were loaded onto ships up to March 12. The exemption will be in effect until midnight on April 11, according to the text published on the agency’s website.
U.S. Treasury Secretary Scott Bessent previewed the decision on his X account, explaining the goal is to stabilize the international energy market. “The measure is designed to be very limited and short-term,” the official wrote in his statement.
Bessent stated that temporarily lifting sanctions on Russian oil remaining at sea could increase the supply available in the global market. “Hundreds of millions of barrels of oil could enter the market if sanctions on Russia are lifted,” he noted.
Broader Context
The decision followed the price of the international benchmark barrel surpassing $100 amid the escalating military situation between the United States, Israel and Iran, and disruptions to oil and gas transport through the Strait of Hormuz.
The Trump administration presented the exemption as part of a set of measures designed to contain volatility in the global energy market. On Wednesday, Washington announced the release of 172 million barrels of oil from the U.S. Strategic Petroleum Reserve to attempt to curb rising prices following the war in Iran.
The release is part of a coordinated commitment with the International Energy Agency (IEA), which groups 32 countries and agreed to release a total of 400 million barrels to compensate for global supply disruptions. The IEA noted that the war in the Middle East is causing the largest oil supply disruption on record.
The Treasury license seeks to temporarily increase the global supply of crude without structurally altering the sanctions regime against Russia. Bessent maintained the initiative will not generate significant financial benefit for Moscow.
Last week, the U.S. Treasury already authorized a specific exemption for India. On March 5, Washington issued a license allowing New Delhi to purchase Russian oil that remained stranded at sea for a period of 30 days.
Frequently Asked Questions
What is the purpose of this new license?
The license authorizes the purchase of Russian oil already on ships to support contain rising crude prices caused by the war against Iran and disruptions to global energy supplies.
How long will this exemption last?
The exemption will be in effect until midnight on April 11, and applies to oil loaded onto ships up to March 12.
What did Secretary Bessent say about this decision?
Secretary Bessent stated the measure is “designed to be very limited and short-term” and aims to stabilize the international energy market.
As global events continue to shift energy markets, how might this temporary measure impact long-term strategies for energy independence and security?
