US extends Russian oil sanctions waiver by 30 days amid Iran war supply concerns

The United States has extended for another 30 days a sanctions waiver permitting countries to buy Russian oil and petroleum products that are already loaded on tankers at sea, as global energy markets remain unsettled by the war between the US, Israel, and Iran.

The extension, announced by Treasury Secretary Scott Bessent on Monday, will run until June 17, according to reports. It is the latest in a series of temporary waivers that began in March, when the US first allowed purchases of Russian oil that was already at sea.

Bessent said the extension is intended "to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea," as quoted in social media posts reported by multiple outlets. He added that the measure "will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries," and that it would "also help reroute existing supply to countries most in need by reducing China's ability to stockpile discounted oil."

The decision comes as the previous waiver expired on May 16, and as oil prices have surged since the start of the war, with US consumers facing gasoline costs more than 50% higher than when the conflict began, according to The Hindu. The war has disrupted oil supplies, in part due to the closure of the Strait of Hormuz, a vital waterway through which about 20 percent of global oil and gas normally passes, and a US naval blockade of Iranian ports, as noted by Al Jazeera.

The waiver's renewal marks a reversal from earlier statements. In April, Bessent told the Associated Press that Washington had no plans to renew the waiver, but the administration later did so. The latest extension is the third such waiver, according to TASS.

Coverage comparison

Reporting on the announcement has been consistent across outlets, though emphasis and details vary. Al Jazeera framed the decision as helping vulnerable nations and noted that Russia's crude exports have increased despite sanctions, and that European sanctions on Russian oil remain in place. The South China Morning Post highlighted the goal of reducing supply shortages caused by the Iran war and also mentioned Bessent's point about China's reduced ability to stockpile discounted oil. The Hindu also emphasized supply shortages and noted that global oil prices have spiked since the war began. TASS, the Russian state news agency, presented the extension in a positive light, quoting Russian presidential envoy Kirill Dmitriev.

All four outlets reported that the waiver applies to Russian oil already loaded on vessels at sea, and that the extension lasts for 30 days. The previous waiver's expiration date was reported by The Hindu as May 16.

Key Claims

  • The US Treasury Department extended for 30 days the waiver of sanctions on Russian oil and petroleum products loaded onto vessels. (Reported by Al Jazeera, South China Morning Post, TASS, and The Hindu)
  • The extension is meant to reduce oil supply shortages caused by the Iran war. (Reported by Al Jazeera, South China Morning Post, and The Hindu)
  • The temporary waiver was first renewed in April. (Reported by Al Jazeera and South China Morning Post)
  • The US first issued the waiver in March. (Reported by Al Jazeera, South China Morning Post, and The Hindu)
  • Bessent said the extension will help poorer nations and reduce China's ability to stockpile discounted oil. (Reported by Al Jazeera, South China Morning Post, and The Hindu)
  • European sanctions on Russian oil remain in place. (Reported by Al Jazeera)
  • Russia's crude exports have increased despite sanctions. (Reported by Al Jazeera)
  • Global oil prices have spiked since the start of the war. (Reported by The Hindu)

Perspectives

US Treasury

Bessent framed the extension as a measure to support vulnerable nations and stabilize the physical crude market, while also noting it would reduce China's ability to stockpile discounted oil.

Russian official

Kirill Dmitriev, Special Representative of the Russian President for Investment and Economic Cooperation, called the extension a positive signal for global energy markets and proof that global energy security is impossible without Russia.

Concerns about Russia's war financing

Some reporting (South China Morning Post) noted the risk that temporarily lifting sanctions could help Russia finance its war in Ukraine, though no official was named in this context.