Oil Prices Ease as US Issues Russian Oil Waiver
US Russian oil 30-day license March 2026
Global oil prices began to retreat on Friday morning following a decision by the Trump administration to issue a temporary 30-day license allowing countries to purchase sanctioned Russian oil and petroleum products currently stranded at sea. The move, announced late Thursday by Treasury Secretary Scott Bessent, is the latest in a series of emergency measures designed to stabilize energy markets roiled by the ongoing war with Iran. According to official Treasury documents, the license authorizes the delivery and sale of Russian crude loaded on vessels as of March 12, 2026, and will remain valid until midnight on April 11. Following the announcement, Brent crude fell 71 cents to approximately $99.75 per barrel, while West Texas Intermediate dropped 88 cents to $94.85, offering a slight reprieve after benchmark prices had surged above $100 earlier in the week.
Treasury Secretary Bessent characterized the authorization as a “narrowly tailored” and “short-term” measure intended to increase the global reach of existing supply without providing significant financial benefits to the Kremlin. In a statement on X, Bessent argued that the current spike in energy costs is a temporary disruption caused by Iran’s attempts to “take global energy hostage” by paralyzing shipping through the Strait of Hormuz. Market analysts estimate that roughly 128 million barrels of Russian oil are currently in transit on previously sanctioned tankers, and the new license effectively permits these cargoes to reach international refiners. The administration has maintained that because Russia derives the majority of its energy revenue from taxes at the point of extraction, allowing the sale of oil already at sea serves as a pragmatic tool to cool the global economy.
The issuance of the general license follows a more restrictive 30-day waiver granted specifically to India on March 5, which had allowed New Delhi to bypass certain sanctions to maintain its energy security. The broader license now permits sales to any country, reflecting White House concerns over the impact of soaring fuel costs on American businesses and consumers. According to Reuters reports, this strategy coincides with the Energy Department’s commitment to release 172 million barrels from the Strategic Petroleum Reserve as part of a 400-million-barrel international effort coordinated by the IEA. While the move has drawn sharp criticism from some lawmakers who argue it undermines pressure on Moscow, the administration insists that domestic production remains at record highs and that the temporary use of stranded Russian assets is a necessary step to defeat inflationary pressures during the Middle East crisis.
