The United States Treasury Department has announced a 30-day extension of its sanctions exemption for Russian maritime oil. This decision follows requests from several countries seeking additional time to procure fuel due to supply disruptions linked to escalating tensions in the Middle East.
Treasury Secretary Scott Bessent confirmed that the sanctions relief will remain in effect for another month. The extension was prompted by appeals from various vulnerable nations facing oil supply challenges after recent conflicts involving Iran and the closure of the Strait of Hormuz.
“This extension will provide additional flexibility, and we will work with these countries to issue specific licenses as needed,” Bessent stated.
This marks the second instance in which Washington has permitted a temporary easing of sanctions on Russian oil. The initial exemption was introduced in March to alleviate shortages in the global market and to mitigate sharp price increases amid U.S. and Israeli attacks on Iran.
While this measure has not significantly reduced oil prices, it has benefitted certain countries, notably India, which had previously been one of the largest purchasers of Russian oil before stricter U.S. sanctions were implemented.
In response to concerns over supply disruptions, Brent crude futures rose approximately 1.5% on Monday, reaching around $111 per barrel.
During a meeting of G7 finance leaders in Paris, Bessent also urged allies to strengthen compliance with sanctions against Iran to limit funding for its military programs.
On April 18, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) issued a new license allowing transactions involving the supply and sale of Russian oil and petroleum products that have already been loaded onto vessels.
The U.S. Treasury has extended its sanctions exemption for Russian oil by 30 days, responding to requests from countries facing supply issues. This decision aims to provide flexibility amid ongoing geopolitical tensions.