In a strategic move to mitigate the surge in energy prices caused by Iranian threats to tanker vessels, the Trump administration has temporarily eased sanctions on Russian oil stranded at sea.
Treasury Secretary Scott Bessent highlighted this decision as a proactive measure by President Trump aimed at stabilizing global energy markets and maintaining low oil prices amidst the turmoil instigated by Iran’s aggressive actions.
“To expand the availability of current oil supplies, the Treasury is granting a temporary allowance for nations to purchase Russian oil that is currently trapped at sea,” Bessent announced on X.
Bessent explained that this measure is a “narrowly focused, short-term strategy” that applies solely to oil shipments that are already en route.
According to CNBC, approximately 124 million barrels of oil, originating from Russia, are currently at sea, which equates to about five to six days’ worth of global supply.
Bessent further emphasized that this action “will not result in substantial financial gain for the Russian government,” noting that Russia primarily earns its energy revenue from taxes levied at the extraction stage.
“President Trump’s pro-energy policies have driven U.S. oil and gas production to record levels, contributing to lower fuel prices for hardworking Americans,” the treasury secretary continued.
“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.”
The exemptions will be in place until April 11.
As the war against Iran continues, oil prices surged to $100 per barrel on Thursday.
The price of a barrel of Brent crude, the international standard, climbed 9.2% to settle at $100.46.
Iranian Supreme Leader Mojtaba Khamenei, meanwhile, vowed Thursday to keep the Strait of Hormuz closed as a “tool to pressure the enemy.”
The strait is a critical chokepoint through which roughly 20% of the world’s oil and liquid natural gas passes. It is also the only sea route that can move oil, natural gas and other cargo out of the Persian Gulf.
“Certainly, the lever of closing the Strait of Hormuz must continue to be used,” said the hardline 56-year-old successor to his father, Ayatollah Ali Khamenei.
Iran has attacked at least seven ships in the Persian Gulf since Wednesday.
