US Temporarily Allows Sale of Russian Oil

The United States is temporarily permitting the sale of Russian oil already at sea, the Treasury Department announced Thursday, as energy prices surged following US‑Israeli strikes on Iran that have intensified conflict in the Middle East.

The move represents a limited easing of sanctions on Russia, which has faced economic restrictions over its invasion of Ukraine.

The Treasury issued a licence allowing the delivery and sale of Russian crude oil and petroleum products loaded on vessels on or before 12:01 a.m. ET March 12, valid through 12:01 a.m. ET April 11.

This follows a similar decision last week, which allowed Russian oil stranded at sea to be sold to India.

US Temporarily Allows Sale of Russian Oil. Credit: Bloomberg

Treasury Secretary Scott Bessent said the latest authorisation aims to “increase the global reach of existing supply” but stressed it is a “narrowly tailored, short-term measure.”

He added that it would not provide “significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction.”

Bessent had previously stated that the administration of President Donald Trump was considering removing additional sanctions on Russian oil.

The announcement comes during disruptions in the global energy and transport sectors due to the Middle East conflict, including near-total halts in shipping through the Strait of Hormuz, a critical route for a fifth of the world’s oil supply.