US allows countries to buy Russian oil stranded at sea for 30 days

The United States has granted a 30-day license for nations to purchase Russian oil and petroleum products that are currently stuck at sea. Treasury Secretary Scott Bessent explained that this move aims to stabilize global energy markets affected by the ongoing war in Iran. This announcement follows the U.S. Energy Department's statement that it would release 172 million barrels of oil from its strategic petroleum reserve to help lower soaring oil prices due to the conflict in Iran. This release is part of a larger plan by the 32-member International Energy Agency to put 400 million barrels of oil into the market. Earlier on Thursday, the agency noted that the war in the Middle East is causing the largest disruption in oil supply ever recorded. In a statement posted on X, Bessent said that the new measure is “narrowly tailored” and “short-term” and should not significantly benefit the Russian government financially. He added, “The temporary increase in oil prices is a short-term disruption that will ultimately benefit our nation and economy in the long run,” reflecting comments made by President Donald Trump. The license, which allows for the delivery and sale of Russian crude oil and petroleum products loaded onto ships since March 12, will be valid until midnight Washington time on April 11, as stated in the document available on the Treasury Department’s website. Previously, on March 5, the U.S. Treasury had issued a 30-day waiver specifically for India, permitting New Delhi to purchase Russian oil that was stranded at sea. To further address rising energy prices, Trump has instructed the U.S. International Development Finance Corporation to provide political risk insurance and financial assurances for maritime trade in the Gulf. Additionally, the U.S. Navy could escort ships in the region. The Trump administration is also considering temporarily suspending the Jones Act, a shipping regulation that would allow foreign vessels to transport fuel between U.S. ports, which could help reduce costs and speed up deliveries.