The US Treasury Department announced on Thursday that it was taking steps to further ease sanctions on Russian oil as crude prices surge during the Iran war. The agency said that it was granting a license that authorises the delivery and sale of some sanctioned Russia crude oil and petroleum products for the next month. Trump signalled earlier this week that he would take further action to ease restrictions on sanctioned oil to help make for the loss of oil flowing on the market because of the effective closure of the Strait of Hormuz.
Oil prices back to USD 100 per barrel
The move follows the Trump administration granting temporary permission for India to buy Russian oil. In the meantime, the worries about the war with Iran sent oil prices back to USD 100 per barrel and stocks sinking worldwide.
The S&P 500 fell 1.5 per cent on Thursday and returned to big swings following a couple days of relative calm. The Dow Jones Industrial Average dropped 1.6 per cent, and the Nasdaq composite sank 1.8 per cent.
The centre of action was again the oil market, where the price of a barrel of Brent crude got as high as USD 101.59. Treasury yields climbed in the bond market on worries about higher inflation and fewer cuts to interest rates by the Federal Reserve.
Trump allows temporary authorisation to other countries to purchase Russian oil
Apart from this, the Trump administration announced a temporary authorisation to other countries to purchase Russian oil currently stranded at sea, as there were no immediate signs of an early end to the US war on Iran.
The US had granted a similar waiver from sanctions to India to buy Russian oil as part of efforts to cool down oil prices that have been on the rise since the outbreak of war on February 28.
"@POTUS is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime," US Treasury Secretary Scott Bessent said in a post on X on Thursday.
US had issued a 30-day waiver allowing India to buy Russian oil
On March 5, the US had issued a 30-day waiver allowing India to buy Russian oil, having previously imposed heavy sanctions related to the war in Ukraine. "To increase the global reach of existing supply, @USTreasury is providing a temporary authorisation to permit countries to purchase Russian oil currently stranded at sea," Bessent said.
He said this narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction.
"President Trump's pro-energy policies have driven US oil and gas production to record levels, contributing to lower fuel prices for hardworking Americans. The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term," Bessent said.
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'To take a little pressure off': Trump on US granting 30-day waiver to India to buy Russian oil
