The U.S. has temporarily lifted sanctions on Russian oil, authorizing the purchase of Soviet crude stranded at sea, as the Trump administration attempts to contain soaring energy prices caused by the launch of “Operation Epic Fury” against the Islamic Republic of Iran.
U.S. Treasury Secretary Scott Bessent confirmed in a social media post via X that the decision was a “narrowly tailored, short-term measure” that only applies to oil currently in transit.
Moscow commended the decision to ease sanctions imposed over Russia’s invasion of Ukraine, encouraging the U.S. to go further.
The measure comes after the newly appointed Supreme Leader of Iran, Mojtaba Khamenei, affirmed the closure of the Strait of Hormuz, a crucial choke point for the global energy supplies.
According to CNBC, as of Mar. 12, there are an estimated 124 million barrels of Russian oil traversing across 30 locations globally, enough for roughly five to six days of supply.
“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,” Secretary Bessent stated, additionally affirming that the measure will not provide “significant financial benefit to the Russian government.”
Secretary Bessent argued his claim, stating that Russia gets the majority of its energy proceeds from tariffs assessed at the point of extraction.
The secretary's announcement failed to drop oil prices, with global benchmark Brent Crude sitting at $100.25 following the announcement, and prices rising to $100.86 as of 1:30 P.M. EST.
The U.S. Treasury’s website published a notice stating that the exemption would cover Russian oil products loaded on vessels on or before 12:01 A.M. EST, with purchases being authorized until Apr. 11, 12:01 A.M.
“The United States is effectively acknowledging the obvious: Without Russian oil, the global energy market cannot remain stable,” Russian President Putin’s special envoy Kirill Dmitriev responded in a statement.
Earlier this week, the International Energy Agency, a coalition of major producers, agreed to release 400 million barrels of crude, a historic move that has unfortunately failed to lower prices.
