Bessent: US Grants 30-Day License for Russian Oil Access
The US Treasury will prolong a sanctions waiver permitting the acquisition of Russian seaborne oil for an additional 30 days, aimed at assisting “energy-vulnerable” nations that have been disconnected from Gulf oil supplies, as stated by Treasury Secretary Scott Bessent on Monday. Bessent indicated that the Treasury was releasing the 30-day general license following the expiration of a prior waiver on Saturday. This measure will facilitate temporary access to Russian oil and petroleum products that are currently stranded on tankers, all while adhering to the stringent US sanctions imposed on Russian oil majors. A source informed that the second waiver extension was sought by impoverished and vulnerable nations unable to secure Gulf oil shipments as a result of the US-Israeli conflict with Iran and the closure of the Strait of Hormuz. “This extension will provide additional flexibility, and we will work with these nations to provide specific licences as needed,” Bessent stated in a social media post.
“This general licence will contribute to stabilising the physical crude market and ensuring that oil is delivered to the most energy-vulnerable countries.” Bessent stated that the measure would facilitate the redirection of current supply to nations that are most in need, enabling them to compete with China for oil that was previously subject to sanctions. The action signifies the second instance in which the Treasury has permitted the sanctions waiver to expire before later extending it. The waiver was initially introduced in March as a measure to alleviate oil supply shortages and counteract price surges triggered by the US-Israeli assaults on Iran, facilitating the release of sanctioned Russian oil and petroleum products that were stranded in tankers.
The waivers have had a minimal impact on lowering oil prices; however, they have benefited India, a significant purchaser of Russian oil before the United States imposed stringent sanctions on Russian oil companies to exert pressure on Moscow regarding its conflict in Ukraine. On Monday, benchmark Brent oil futures prices increased approximately 1.5 percent to around $111 a barrel, driven by escalating concerns regarding tight supply, particularly with the Strait of Hormuz remaining closed. Crude experienced a decline earlier in the session following a report suggesting that the US was contemplating a temporary lifting of sanctions on Iranian oil amid peace negotiations.
However, it was subsequently reported that this information was inaccurate, referencing a US official. Bessent, currently in Paris for a meeting of finance leaders from the Group of Seven, expressed his desire for the G7 and other allies to enhance the enforcement of sanctions against Iran. “We urge all G7 nations, as well as our allies and the global community, to adhere to the sanctions framework, enabling us to combat the illicit financial flows that support the Iranian war apparatus and redirect these resources to the Iranian populace,” Bessent stated.
