The United States has approved a 30-day exemption permitting countries to acquire Russian-origin oil and petroleum products currently stranded at sea. The authorization comes as Washington seeks to mitigate heightened volatility in global energy markets following the outbreak of conflict with Iran.
As of March 12, industry data reports approximately 124 million barrels of Russian oil afloat across 30 maritime locations worldwide, which equates to about five to six days of standard global supply. The temporary waiver was announced in response to surging energy prices, which soared near $120 per barrel earlier this week, following military actions by the U.S. and Israel against Iran. The escalation has intensified regional instability and disrupted critical shipping routes through the Strait of Hormuz.
To further address escalating prices and supply concerns, U.S. officials on Wednesday outlined plans to release 172 million barrels of oil from the Strategic Petroleum Reserve. This move forms part of a coordinated effort with the International Energy Agency, which has pledged a collective release of 400 million barrels among its 32 member nations.
U.S. Treasury Secretary Scott Bessent indicated the limited financial gains for Russia under this waiver, explaining that Moscow derives most of its related revenue from extraction taxes rather than oil-in-transit. The license authorizes the delivery and sale of Russian crude and petroleum products that were loaded on vessels as of March 12, with validity until midnight (Washington time) on April 11, according to the Treasury Department.
The current waiver follows a similar 30-day authorization for India to purchase Russian oil, issued by Washington in early March. In recent remarks, Bessent characterized any financial benefit for Russia as “unfortunate,” but anticipated the impact would last only a short period.
The decision highlights the administration’s concern over sharp oil price increases adversely affecting U.S. businesses and consumers, with the midterm elections approaching later this year. The present policy shift comes after former President Joe Biden’s 2022 ban on the import of Russian oil, LNG, and coal into the U.S.
