Topline
The U.S. Treasury Department on Thursday announced it was easing some sanctions on Russian oil, but the move did not trigger significant movement in global crude prices, which remained above $100 a barrel, as the ongoing Iran war continues to disrupt movement of oil tankers through the Strait of Hormuz.
Photo caption: The Treasury Department’s move temporarily eases sanctions on Russian oil currently stranded in sea. Europa Press via Getty Images
Key Facts
In a post on X, Treasury Secretary Scott Bessent said: “To increase the global reach of existing supply, the U.S. Treasury is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea.”
Bessent said this “narrowly tailored, short-term measure applies only to oil already in transit and will 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.”
The exemptions will remain in effect until April 11 and analysts told the Associated Press this move could help open access to around 125 million barrels of sanctioned Russian oil currently stranded at sea.
In his post, Bessent described the ongoing spike in global oil prices as a “short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term.”
How Have Oil Markets Reacted?
After rising more than 10% in the previous day, the global benchmark Brent Crude index remained above $100 per barrel early on Friday. The U.S. benchmark West Texas Intermediate also remained above $95 per barrel, largely unmoved by the easing of sanctions. Earlier on Thursday, President Donald Trump signaled that he was unbothered by elevated oil prices, posting on Truth Social that: “The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money.” He then added that “stoping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and…the World,” was of far more importance to him.
Chief Critic
The seniormost Democrat in the Senate’s Foreign Relations Committee, Jeanne Shaheen, D-N.H., tweeted: “ As Putin helps Iran target Americans in the Middle East, POTUS is now filling the Kremlin’s war coffers. Instead of squeezing Russia’s faltering economy, the President’s ill-planned war is giving Putin a windfall while American families face higher prices.”
=== Forbes ===
