The United States Department of the Treasury has prolonged a waiver allowing the sale of sanctioned Russian oil on vessels until May 16, as revealed on its official website. The extension aims to stabilize global energy prices, responding to the US-Israeli conflict with Iran that has caused price surges. This decision addresses the challenges faced by various nations due to escalating energy costs and supply disruptions.
The renewed license, issued on Friday, maintains restrictions on dealings with specific countries, excluding transactions involving entities from countries like Iran, North Korea, and Cuba. US Treasury Secretary Scott Bessent emphasized that the US does not plan to extend waivers indefinitely amidst growing geopolitical tensions. Global oil prices experienced a significant drop of about 9% after Iran briefly reopened the Strait of Hormuz, a critical energy transit route, settling near $90 per barrel.
The ongoing conflict has led to severe disruptions in global energy supplies, with over 80 oil and gas facilities damaged across West Asia. Tehran has warned of potentially closing the Strait of Hormuz again if the US Navy persists in blockading Iranian ports. Russian presidential envoy Kirill Dmitriev expressed optimism about continued US-Russian economic and energy collaboration following the waiver extension. He highlighted that the initial waiver could release up to 100 million barrels of crude oil, equivalent to almost a day’s global oil production.
