The United States has announced a further 30-day extension of a sanctions waiver that permits purchases of Russian seaborne oil, aiming to aid "energy-vulnerable" countries affected by the war with Iran. The move reverses earlier plans not to grant an extension, as supply concerns keep Brent crude above $110 per barrel.
Treasury Secretary Scott Bessent said the Treasury issued the 30-day general license after a previous waiver lapsed on Saturday. The license allows temporary access to Russian oil and petroleum products stranded on tankers without violating severe US sanctions on Russian oil majors. "This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries," Bessent said.
The extension has drawn sharp criticism from two senior Democratic senators, Jeanne Shaheen of New Hampshire and Elizabeth Warren of Massachusetts, who blasted it as an "indefensible gift" to Russian President Vladimir Putin. "Every additional dollar the Kremlin earns from this license helps Putin finance his illegal war against Ukraine and kill innocent Ukrainians," they said in a statement. They argued the sanctions relief has not lowered US gasoline prices or stabilised global energy markets.
Analysts expressed doubt that the short-term waivers would have a meaningful impact on US petrol prices, noting that British and European sanctions on Russian oil purchases remain in place. Meanwhile, benchmark Brent crude futures rose about 2.6% to close above $112 per barrel on Monday due to growing supply concerns. Bessent, attending a G7 finance leaders meeting in Paris, called for stronger enforcement of Iran sanctions by allies.
