The U.S. Treasury Department on Thursday authorized the purchase of Russian oil already loaded onto ships, a move intended to stabilize global energy markets as prices approach $100 per barrel amid the ongoing conflict involving Iran and Israel. The authorization, announced by Treasury Secretary Scott Bessent, permits transactions for petroleum products loaded before March 12, 2026, and extends through April 11, 2026.
Bessent stated the temporary waiver is “narrowly tailored” and will not significantly benefit the Russian government, which primarily derives revenue from taxes levied at the point of oil extraction. He asserted the measure aims to “increase the global reach of existing supply” as the war between the U.S., Israel, and Iran disrupts petroleum trade. Approximately 124 million barrels of Russian oil are currently at sea globally, according to CBS News.
The decision follows a narrower sanctions license issued last week allowing India to purchase Russian oil and petroleum products for one month, reversing previous pressure from the Trump administration to curtail such purchases. The current waiver applies to all countries, offering a temporary reprieve from sanctions that have complicated business dealings with Russia’s energy sector since the 2022 invasion of Ukraine.
Moscow welcomed the move. Kirill Dmitriev, Russia’s economic envoy, said Friday that a stable global energy market is “impossible” without Russian oil, according to reports.
The administration’s action has drawn criticism from some Democratic members of Congress, who argue it could provide financial support to President Vladimir Putin’s government and undermine efforts to limit Russia’s ability to finance its war in Ukraine.
Despite the announcement, oil prices saw only a limited reaction, increasing by approximately 10 percent on Thursday before stabilizing. The Trump administration has been facing increasing pressure to address rising gasoline prices, particularly as the conflict in the Middle East threatens further disruptions to oil supplies. The waiver is intended to provide a short-term buffer against price volatility.
The Treasury Department has not yet indicated whether the waiver will be extended beyond April 11, 2026.
