Russian oil sanctions: US extends waiver for cargoes already at sea

The US administration has decided to extend a narrow window for global buyers to purchase Russian oil shipments already at sea, despite earlier indications that such relief would not continue.Late Friday, the US Treasury Department published a new licence granting a roughly month-long waiver, which allows nations to buy Russian oil and petroleum products loaded onto vessels as of Friday, with the provision running until 12:01 am (0401 GMT) on May 16. The measure replaces the previous 30-day waiver that expired on April 11.The decision marks a reversal from comments made just two days earlier by Treasury Secretary Scott Bessent, who had said Washington would not extend waivers covering Russian or Iranian oil. “We will not be renewing the general license on Russian oil,” he said, adding, “That was oil that was on the water prior to March 11, so all that has been used.”The waivers form part of a broader attempt to manage volatility in energy markets during the ongoing US-Israeli war against Iran. Since the conflict began back on February 28, it has disrupted energy supplies across the globe. After US and Israel launched joint strikes on Iran, the country extended its control over the crucial Strait of Hormuz, effectively draining global oil and gas shipments. Prior to the war, about a fifth of the world’s energy flows passed through the route.As supplies squeezed, oil prices surged, affecting economies worldwide and placing additional pressure on countries reliant on energy imports. The earlier waiver issued on March 20 enabled around 140 million barrels of Iranian oil to reach global markets, helping to ease supply pressures, according to Bessent. That arrangement is due to expire on Sunday.The renewed relief for Russian shipments has drawn criticism from US lawmakers across party lines, who argue that such measures risk supporting economies engaged in conflicts with Washington and its partners.Russian presidential envoy Kirill Dmitriev had previously told Reuters that the original waiver could release 100 million barrels of Russian crude into the market, an amount close to a full day of global production.