The U.S. Treasury is issuing a temporary authorization to permit countries worldwide to purchase Russian oil currently at sea. Secretary Scott Bessent stated this move aims to increase global supply and counter instability stemming from the Iran war. This extends a previous waiver that was limited to Indian refiners.
Bessent emphasized the authorization will not significantly benefit the Russian government, as its primary energy revenue comes from taxes at the point of extraction. The U.S. Treasury's Office of Foreign Assets Control published a related waiver limiting its scope to already loaded shipments and excluding new trade, consistent with U.S. sanctions.
This decision is the latest effort by the Trump administration to manage oil price fluctuations. Disruptions in the Strait of Hormuz, due to Iranian attacks, have tightened supply routes. Earlier, the International Energy Agency announced a record emergency stockpile drawdown. However, ongoing Iranian strikes and fears of a prolonged strait closure have muted the impact on oil prices.
In related news, reports suggest the Trump administration may suspend the Jones Act, a federal maritime law requiring U.S. ports to use American vessels. A suspension would allow foreign tankers to transport cargo along the U.S. coast, potentially easing domestic fuel costs. Benchmark oil prices remain above $100 a barrel.
Separately, Secretary Bessent is scheduled for economic talks in Paris with Chinese Vice Premier He Lifeng, preparing for President Trump's visit to Beijing.