U.S. Waives Sanctions on Russian Oil Amid Global Energy Crisis

The United States issued a temporary 30-day waiver on sanctioned Russian oil to stabilize energy markets amid the Iran war. This move aims to manage rising oil prices, although it may strain relations with European allies opposing relaxed sanctions on Russia.

The United States has issued a 30-day waiver allowing countries to purchase sanctioned Russian oil stranded at sea, in a bid to stabilize the energy markets disrupted by ongoing conflict in Iran. Treasury Secretary Scott Bessent asserted that the decision, affecting 100 million barrels of Russian crude, serves as a temporary measure amid skyrocketing oil prices.

This waiver marks the second relaxation of U.S. sanctions related to the Ukraine war within a week, as the Trump administration attempts to curb rising energy costs following U.S. and Israeli actions that have crippled shipping through the Strait of Hormuz. Despite easing constraints on Russian oil, it may challenge efforts by Washington and allies to restrict Russia's revenue sources.

European officials, including Ursula von der Leyen, have voiced opposition to relaxing Russian sanctions amidst the current energy crisis. Meanwhile, the U.S. promises more actions to alleviate energy prices, guided by strategic dialogues with international leaders, including Russia's Putin. The relief also paves the way for international purchases of Russian crude, as nations prepare to negotiate sales.

(With inputs from agencies.)