US extends sanctions waiver for purchases of Russian oil

A fresh sanctions waiver from President Donald Trump’s administration will allow the sale of Russian oil and petroleum products already at sea for another month, the latest sign that Washington is trying to contain a sharp rise in energy costs.

The Treasury Department issued the license just two days after Treasury Secretary Scott Bessent said the United States would not extend the waiver.

Under the new measure, buyers may purchase oil and petroleum products loaded onto any vessel as of Friday, up to 12.01 am (5.01am) on 16 May.

It extends a previous sanctions reprieve that had run out on 11 April.

Both steps were designed to cushion global supply disruptions caused by the US-Israeli war against Iran.

Energy markets have been jolted since war broke out on 28 February

In response, Tehran moved to effectively shut the Strait of Hormuz, a vital artery for global energy shipments.

It later reopened the passage temporarily after a ceasefire agreement in Lebanon, fueling hopes that broader peace talks could follow.

Still, Tehran warned it may again close the strategic waterway if the recent US Navy blockade of Iranian ports ⁠continued.

Since then, oil prices have climbed sharply, adding strain for countries — particularly those reliant on energy exports from the region.

Gasoline prices in the United States have also risen, increasing pressure on households ahead of key midterm elections later this year.

At the same time, waivers of this kind risk undercutting efforts to deny Russia the oil income it relies on to finance its war in Ukraine.

Speaking this week after a meeting of Group of Seven finance leaders in Washington, French Finance Minister Roland Lescure said that “Russia mustn’t be getting benefits from what’s happening in Iran”.

He added that Ukraine should not become “collateral damage”.

Russia’s invasion of Ukraine, launched in 2022, has become Europe’s deadliest conflict since World War II.