U.S. Allows Countries To Buy Russian Oil Stranded At Sea For 30 Days
March 12 (Reuters) – The United States has issued a 30-day license for countries to purchase Russian oil and oil products currently stranded at sea. Treasury Secretary Scott Bessent said this was a step to stabilize global energy markets shaken by the Iran war.
The announcement came a day after the U.S. Department of Energy said the United States would extract 172 million barrels of oil from its strategic oil reserves in an effort to stem skyrocketing oil prices following the war in Iran.
The announcement was part of a broader commitment by the 32-nation International Energy Agency to release 400 million barrels of oil. The agency said early Thursday that the war in the Middle East had led to the largest oil supply disruption in history.
In a statement about X just hours after benchmark oil prices rose above $100 a barrel, Bessent said the measure was “narrowly tailored” and “short-term” and would not provide any significant financial benefit to the Russian government.
Recalling President Donald Trump in his statement, Bessent said, “The temporary increase in oil prices is a short-term and temporary interruption and will greatly benefit our country and economy in the long term.”
According to the license text published on the Treasury Department’s website, Thursday’s license, which allows the delivery and sale of Russian crude oil and oil products loaded on ships as of March 12, will remain valid until midnight on April 11, Washington time.
The US Treasury had previously issued a 30-day exemption specifically for India on March 5, allowing New Delhi to purchase Russian oil stuck at sea.
Among other measures to rein in energy prices, Trump ordered the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf and said the U.S. Navy could escort ships in the region.
In another attempt to control prices, the Trump administration is considering temporarily waiving a shipping rule known as the Jones Act to ensure energy and agricultural products move freely between U.S. ports, the White House said.
Waiving the rule would allow foreign ships to carry fuel between U.S. ports, potentially lowering costs and speeding deliveries.
“The president is taking every step he can to bring down prices … pushing our own producers to drill and expand production as quickly and far as possible to bring unapproved oil that’s offshore to market, providing regulatory relief, and you’ll see more in the coming days,” White House Deputy Chief of Staff Stephen Miller told Fox News’ “Primetime” on Thursday.
About 124 million barrels of Russian-origin oil were available on water at 30 different locations around the world as of Thursday, Fox News reported, adding that the U.S. license would provide about five to six days of supply considering the daily oil loss in the Bosphorus.
Trump said early Thursday that the United States would make a significant amount of money from soaring oil prices due to the war, prompting criticism from some lawmakers who accused him of only caring about the wealthy.
US and Israeli attacks on Iran and Tehran’s subsequent response have increased regional tensions and paralyzed shipping in the Strait of Hormuz, disrupting the vital flow of oil and natural gas in the Middle East and causing energy prices to rise.
Increasing risks for the global economy, Iran’s Islamic Revolutionary Guard Corps says it will block oil shipments from the Gulf unless US and Israeli attacks end.
(Reporting by Ismail Shakil, Christian Martinez and Jasper Ward; editing by Dan Burns and Lincoln Feast.)
