US temporarily lifts sanctions on Russian oil amid Iran crisis

The United States has temporarily eased sanctions imposed on Russian oil to control rising global fuel prices and maintain supply stability. The decision allows Russian oil tankers to operate for a specific period, reports The Guardian.

The US Treasury Department's Office of Foreign Assets Control (OFAC) announced in an online notification on Thursday, March 12, that a special license has been issued for vessels carrying Russian crude oil and petroleum products.

According to this decision, Russian oil tankers will be able to operate without legal hindrance until April 11. The strict sanctions imposed on Russia following its invasion of Ukraine are being temporarily relaxed due to the recent war situation involving Iran.

US Treasury Secretary Scott Bessent said this step is part of President Donald Trump's broader strategy. The decision has been made to address the global instability and security risks created by Iran's recent actions.

Washington's primary goal is to keep oil prices within reach of ordinary people in the international market and to keep the global energy supply system functioning. The Treasury Department stated that the new license will mainly apply to oil and petroleum products loaded onto ships by March 12.

The US has taken previous steps to address the energy crisis. A day before this announcement, the country declared it would release 172 million barrels of oil from its strategic reserves into the market.

Global markets became unstable after Iran threatened to close the Strait of Hormuz, a crucial waterway in the Persian Gulf. Approximately 20 per cent of the world's total oil supply is transported through this strait, which is now at risk due to the war situation.

Meanwhile, the International Energy Agency (IEA) has directed its member countries to release a record 400 million barrels of oil from government reserves into the market. The goal of this global initiative is to ensure alternative supplies to Iranian oil and maintain stability in the energy market.

According to analysts, this temporary concession to Russia is essentially a strategic move by the US to reduce the global economic crisis and energy market instability caused by the war.