The US Treasury has temporarily lifted sanctions on Russian oil for 30 days, effective March 12, allowing shipments of oil and petroleum products already in transit. The move aims to stabilize global energy markets disrupted by the ongoing conflict between the US, Israel, and Iran.
“This short-term measure applies only to oil currently in transit and is not expected to provide significant financial gain to the Russian government,” said US Treasury Secretary Scott Bessent.
Despite the easing of sanctions, oil prices continued to climb on Friday, driven by geopolitical tensions in the Middle East. Analysts note that Russia stands to benefit from the situation, potentially using the proceeds to fund its military operations in Ukraine.
In the US, gasoline prices have surged 65 cents per gallon over the past month. Brent crude futures for May rose $1.02, or 1%, to $101.48 per barrel, marking a nearly 10% weekly gain, while West Texas Intermediate (WTI) crude for April increased $0.94, or 1%, to $96.67 per barrel, a rise of over 6% this week.
The announcement follows a coordinated plan with the International Energy Agency to release record strategic reserves, totaling 400 million barrels, including 172 million from the US, to ease price pressures. Before lifting sanctions, the US had allowed India to purchase Russian crude, estimated at around 124 million barrels, under sanction.
Russian officials, including Presidential Economic Advisor Kirill Dmitriev, welcomed the temporary relief, saying, “Without Russian oil, the global energy market cannot remain stable.” British Energy Secretary Michael Shanks warned that the decision could indirectly support Russia’s military, though the UK will maintain its sanctions on Moscow.
Foreign Secretary Yvette Cooper highlighted cooperation between Russia and Iran in disrupting oil routes through the Strait of Hormuz but refrained from criticizing the US measure, calling it “a targeted, specific action” amid rising prices.
