Putin Wins Big as Trump Lifts Sanctions on Russian Oil Amid Iran War

The United States has temporarily eased restrictions on the purchase of certain Russian oil shipments currently stranded at sea, as global energy markets face growing strain due to the ongoing war involving Iran. The decision was announced Thursday by the U.S. Treasury Department, which issued a limited license allowing countries to buy Russian crude and petroleum products that are already in transit aboard tankers. The measure comes at a time when oil prices have surged, with Brent crude settling above 100 dollars per barrel for the first time since August 2022.

Treasury Secretary Scott Bessent said the authorization is intended to prevent disruptions to global supply rather than provide financial relief to Moscow. According to his statement, the waiver applies only to cargoes of Russian oil that had already been loaded onto ships as of March 12. The temporary license will remain in effect until April 11, allowing those shipments to be delivered and sold during that period. Bessent stressed that the step is narrowly focused and short-term, noting that Russia earns most of its energy revenue from taxes imposed at the point of extraction rather than from sales after shipment.

The move represents a limited rollback of earlier sanctions pressure directed at Russia’s energy sector, which Washington had sought to restrict in order to reduce the flow of funds supporting Moscow’s war in Ukraine. By allowing stranded shipments to reach buyers, U.S. officials say the aim is to keep oil moving through global markets at a time when supplies are already under significant stress.

The conflict with Iran has intensified the pressure on energy supplies. Since U.S. and Israeli strikes against Iran and Tehran’s subsequent retaliation, tanker traffic through the Strait of Hormuz has effectively halted. The narrow waterway normally handles roughly one-fifth of global crude shipments, and its disruption has triggered fears of a major supply shortage. Analysts warn that even if the fighting ends quickly, reopening the strait to normal shipping could take time.

The crisis has prompted governments worldwide to search for ways to stabilize fuel markets. Measures taken so far include releasing emergency oil reserves, introducing limits on fuel prices, and encouraging reductions in consumption. Earlier this week, more than 30 member states of the International Energy Agency agreed to release a record 400 million barrels of oil from strategic reserves to ease pressure on prices.

The United States had already taken steps to keep supplies flowing. Earlier this month Washington granted Indian refiners a 30-day waiver allowing them to purchase Russian oil that was already stranded at sea. Officials said the objective was to ensure that oil already in the global distribution system could reach buyers rather than remain idle aboard tankers. Reports indicate that dozens of ships are involved in transporting Russian crude, including at least 25 vessels carrying unrefined oil.

At the same time, the Trump administration has taken additional measures to protect shipping in the region. President Donald Trump has instructed the U.S. International Development Finance Corporation to provide guarantees and political risk insurance for maritime trade moving through the Persian Gulf, an effort aimed at maintaining commercial routes despite the security risks.

The decision to temporarily ease sanctions has sparked criticism in Washington. Democratic Senator Jeanne Shaheen of New Hampshire, a senior member of the Senate Foreign Relations Committee, argued that the move could ultimately benefit the Kremlin. In a statement posted online, she accused the administration of helping fill Russia’s war coffers at a time when Moscow is supporting Iran’s actions in the Middle East.

The development underscores the difficult balance facing policymakers as they attempt to contain the economic fallout from the conflict. With energy markets already under severe pressure and oil prices climbing, governments are increasingly weighing the need to maintain supply against the political goal of keeping sanctions on Russia intact.