To keep energy markets stable, the US changes its mind and allows more oil from Russia that was previously sanctioned to be sold.
This happened at the same time that US Secretary of the Treasury Scott Bessent said on Wednesday that the general licence would not be extended because of the current political unrest.
In an effort to calm down energy markets around the world that have been shaken by the ongoing war in West Asia, the US Treasury Department has given a new temporary release that lets sanctioned Russian oil that is stuck at sea be sold and transported.
The licence, which was given out on Friday (local time), lets countries buy Russian oil and oil products that are already on ships as of April 17. The licence is good until May 16. It takes the place of an earlier 30-day waiver that ran out on April 11.
These words are from a licence that was posted on the Treasury department’s website:
(a) Unless stated otherwise in paragraph (b) of this general licence, all transactions normally connected to the sale, delivery, or offloading of crude oil or petroleum products from the Russian Federation on any vessel, including vessels blocked by the above-mentioned authorities, on or before 12:01 a.m. eastern daylight time, April 17, 2026, are authorised until 12:01 a.m. eastern daylight time, May 16, 2026.
However, the waiver keeps strong restrictions on doing business with Iran, Cuba, and North Korea. This general licence didn’t allow any of the following: (1) Any deal involving a person from or organised under the laws of the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Covered Regions of Ukraine (as defined by E.O. 14065), the Crimea Region of Ukraine (as defined by E.O. 13685), or any business owned or run by or in partnership with any of those countries;
The event happened after US Treasury Secretary Scott Bessent said on Wednesday (local time) that the US would not renew the general licence that allowed limited trades involving Russian and Iranian oil because of the ongoing political issues.
“We are not going to renew the general licence for oil from Russia and Iran.” That was oil in the water before March 11th. At a press conference, Bessent said, “All of that has been used.”
According to Al Jazeera, a Russian presidential delegate named Kirill Dmitriev said that the first release could free up about 100 million barrels of crude oil, which is about the same amount of oil that the world produces in one day.
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Some Western leaders have said bad things about the choice
Al Jazeera reported that Ursula von der Leyen had previously said she was worried that these kinds of waivers could weaken sanctions that are meant to stop Russia from making too much money from its war in Ukraine.
CNN reports that the oil markets reacted strongly when Iran’s foreign minister said that all business ships would be able to pass through the Strait of Hormuz during the calm. At USD 90.38 per barrel, Brent oil was down more than 9%, the lowest level since March 10.
At the same time, Iran has said that it will strictly control all maritime movement through the Strait of Hormuz, saying that only approved routes will be allowed. This comes as tensions between Iran and the US over regional security and negotiations continue to rise.
According to Mohammad Bagher Ghalibaf, Speaker of the Parliament of the Islamic Republic of Iran, ships will only be able to pass through the Strait of Hormuz if they follow the “designated route” and get permission from Iran. 5-The field, not social media, will decide whether the Strait is open or closed and what the rules are for it.
On the other hand, US President Donald Trump said on Friday (local time) that any deal with Iran would not go into full force until it was fully finished. He also said that there had been major political and security breakthroughs between Iran, Israel, and Lebanon.
At the Turning Point USA event in Phoenix, Arizona, Trump talked about what was going on in West Asia. He said, “Today will be a great and brilliant day for the world because Iran just announced that the Strait of Hormuz is fully open and ready for business and full passage.” Our navy is the best in the world, and our military is the best the world has ever seen. We built the naval blockade. We built it during my first term…While our deal with Iran is still being worked out, we will stay fully in effect until the deal is fully signed and completed (ANI).
