Sanctions bend as oil spikes: US lets nations buy Russian crude stranded at sea

The United States has allowed countries to purchase Russian crude that is currently stranded at sea, in a temporary step meant to ease pressure on global energy markets shaken by the ongoing West Asia crisis.

The decision comes as oil prices remain elevated and governments worry about possible disruptions to supply routes in the Middle East. Washington says the move is designed to widen the availability of the existing oil supply while keeping global fuel prices from climbing further.

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US Treasury Secretary Scott Bessent said the measure is narrowly defined and will apply only to Russian oil shipments that were already loaded onto vessels and are currently in transit.

In a message posted on social media, Bessent said the administration of US President Donald Trump was taking steps to stabilise energy markets.

“@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,” he wrote.

Temporary waiver for oil already at sea

Bessent said the US Treasury had issued a limited authorisation allowing countries to purchase Russian oil cargoes that are already at sea but unable to reach buyers because of sanctions-related restrictions.

“To increase the global reach of existing supply, @USTreasury is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea,” he said.

Officials stressed that the exemption is strictly temporary and applies only to oil already on ships.

“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,” Bessent said.

The move comes as oil markets remain on edge. Escalating tensions in the Middle East have fuelled worries that key supply routes could be disrupted.

Benchmark Brent crude briefly approached USD 120 per barrel, a multi-year high, before easing. Prices are currently trading close to USD 100 per barrel, roughly 35 per cent higher than levels seen before the latest conflict escalated.

Bessent also said US energy production remained strong, pointing to record levels of oil and gas output under the Trump administration.

“President Trump’s pro-energy policies have driven US oil and gas production to record levels, contributing to lower fuel prices for hardworking Americans,” he said.

He described the current spike in oil prices as temporary.

“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 added.