The United States has granted a 30-day license for nations to purchase Russian oil and petroleum products currently stranded at sea. Treasury Secretary Scott Bessent described this move as a measure to stabilize the global energy markets, which have been disrupted by the conflict in Iran.
This decision follows the U.S. Energy Department’s announcement of releasing 172 million barrels of oil from the strategic petroleum reserve to address the soaring oil prices. The International Energy Agency, comprising 32 nations, has committed to releasing a total of 400 million barrels of oil due to the unprecedented oil supply disruption caused by the Middle East conflict.
Bessent emphasized that the license is a temporary and narrowly tailored action that will not offer significant financial gains to the Russian government. He stated that the short-term oil price increase will benefit the nation and economy in the long run.
However, Ukrainian President Volodymyr Zelenskyy expressed concerns that the license could generate substantial revenue for Russia, hindering peace efforts. The decision also raised unease among Ukraine’s allies, particularly regarding the reliance on Russian energy.
The U.S. Treasury issued the license to authorize the delivery and sale of Russian oil and petroleum products loaded on vessels as of March 12. This license will remain valid until April 11. Previously, a 30-day waiver was granted on March 5 specifically for India to purchase Russian oil stuck at sea.
In further efforts to manage energy prices, the Trump administration is contemplating waiving the Jones Act to facilitate the movement of energy and agricultural products between U.S. ports. The administration is also exploring various measures to enhance domestic production and reduce costs.
With approximately 124 million barrels of Russian-origin oil on water across various locations globally, the U.S. license is expected to provide around five to six days of supply. The Kremlin spokesperson, Dmitry Peskov, viewed the U.S. sanctions waiver on Russian oil as a step towards stabilizing global energy markets, indicating a shared interest between the two nations.
President Trump highlighted the potential financial gains for the United States from increased oil prices driven by the conflict, emphasizing the country’s position as the largest oil producer globally. The ongoing tensions in the Middle East, particularly due to actions between the U.S., Israel, and Iran, have significantly impacted energy prices and global trade routes.