US Treasury Secretary Scott Bessent hinted at the possibility of temporarily relaxing restrictions on Russian oil supplies to help stabilize global energy markets amid the ongoing Middle East conflict. In an interview with Fox Business, Bessent mentioned that the US had granted India some flexibility in response to supply disruptions that had driven up prices.
Bessent acknowledged India’s compliance with the request to halt purchases of sanctioned Russian oil, originally planning to substitute it with American crude. However, given the disruptions in global oil shipments and soaring insurance costs for tankers passing through the Strait of Hormuz, Washington permitted a temporary adjustment to prevent shortages.
With concerns over potential disruptions to oil shipments due to tensions involving Iran, oil prices have surged. President Donald Trump has announced plans to expand government-backed insurance coverage for oil shipments in the Gulf region to stabilize maritime energy trade and reassure insurers and shipping companies.
Bessent also mentioned the possibility of revisiting sanctions on Russian crude already in transit to release additional supplies. He highlighted the significant amount of sanctioned crude stranded at sea due to restrictions, suggesting that easing these restrictions could quickly increase supply and stabilize oil markets during the conflict.
The US administration, according to Bessent, is considering further measures to provide relief to the market as the conflict progresses. India, a major buyer of discounted Russian crude, has emphasized the need for diversified supply sources for energy security and domestic demand.
