US Extends Russian Crude Oil Sanctions Waiver by 30 Days Amid Supply Disruptions

The United States has extended a sanctions waiver allowing limited transactions involving Russian seaborne oil and petroleum products for another 30 days, as per a Reuters report. 

U.S. Treasury Secretary Scott Bessent said the extension would allow temporary access to Russian oil cargoes stranded on tankers without violating existing sanctions.  

The earlier waiver had expired on Saturday before the U.S. Treasury issued a fresh general licence on Monday. The licence applies only to cargoes loaded before April 17 and does not cover newly exported Russian crude. 

Supply Concerns Following Iran Conflict 

The extension comes amid disruptions in global oil flows linked to the conflict involving Iran and the closure of the Strait of Hormuz.  

According to Reuters, several lower-income and energy-dependent countries requested additional time to secure oil supplies after Gulf shipments were affected. 

The Treasury said the waiver was intended to support countries facing immediate supply shortages and provide flexibility until alternative arrangements are made. The measure was first introduced in March after supply concerns pushed oil prices higher. 

Brent Crude Trades Above $112 

Oil prices remained volatile on Monday as markets continued to assess supply risks in the Middle East. Brent crude futures rose around 2.6% to close above $112 per barrel. 

Crude prices had briefly declined earlier in the session after reports suggested the U.S. was considering temporary sanctions relief on Iranian oil during negotiations. However, later reports citing a U.S. official said the information was inaccurate. 

Criticism Over Russia Revenue Impact 

The waiver extension drew criticism from Democratic senators Jeanne Shaheen and Elizabeth Warren. The lawmakers said additional oil sales could increase revenue available to Russian President Vladimir Putin while the war in Ukraine continues. 

The sanctions were originally imposed on Russian energy companies including Rosneft and Lukoil as part of measures targeting Moscow’s oil income. 

Read More: OMCs Continue Facing ₹750 Crore Daily Under-Recoveries Despite Recent Fuel Price Hike! 

Conclusion 

The temporary licence was extended as global crude markets continue to face pressure from supply disruptions and rising oil prices. Fresh Russian oil exports remain outside the scope of the waiver. 

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