The Trump administration announced on Thursday that it is temporarily lifting sanctions on Russian oil that is currently “stranded at sea.” This action aims to address the rising energy prices, which have skyrocketed due to Iranian threats against tanker vessels.
According to Treasury Secretary Scott Bessent, this decision is part of President Trump’s proactive strategies to “promote stability in global energy markets” and keep oil prices manageable amidst the “threats and instability from the Iranian regime.”
“To expand the existing supply range globally,” Bessent noted that the Treasury has granted temporary permission for countries to buy Russian crude oil stuck in transit. He clarified that these “narrowly tailored short-term measures” apply only to oil that is already en route.
Currently, it’s estimated that about 124 million barrels of oil from Moscow are at sea, which could supply energy for approximately five to six days.
Bessent emphasized that this does not significantly benefit the Russian government financially, asserting that the Kremlin relies primarily on taxes charged at the extraction point for its energy revenue.
He also highlighted that “President Trump’s pro-energy policies have driven U.S. oil and gas production to record highs, which has helped lower fuel prices for hardworking Americans.” While he acknowledged a potential short-term spike in oil prices, he believes it will yield substantial long-term advantages for the economy.
The exemption is set to last until April 11th. Oil prices surged to $100 a barrel on Thursday, fueled by ongoing conflicts with Iran. Brent crude oil’s price jumped 9.2%, closing at $100.46.
In related developments, Iran’s Supreme Leader Mojtaba Khamenei declared on Thursday his intent to keep the Strait of Hormuz closed to apply pressure on adversaries. This strait is a crucial passage, accounting for roughly 20% of global oil and liquid natural gas traffic and serves as the sole shipping route for oil and other goods from the Persian Gulf.
“Certainly, the lever of closing the Strait of Hormuz must continue to be used,” said Khamenei, who has continued his hardline stance as the successor to his father, Ali Khamenei.
Since Wednesday, Iran has reportedly attacked at least seven ships in the Persian Gulf.
