WASHINGTON: The United States has issued a licence letting countries buy more Russian oil that’s already been loaded on tankers, part of the White House’s push to prevent prices from surging.
The temporary authorisation, which applies to Russian crude that would otherwise be sanctioned, comes after a previous waiver expired April 11. It applies to crude that was loaded onto tankers on or before April 17, the Treasury said in a statement.
It marked a shift from Treasury Secretary Scott Bessent’s comments earlier that the United States would not renew general licences that allowed for the temporary sale of certain Russian and Iranian crude.
Oil prices have soared since the war in Iran began, driving fuel prices at the pump globally, including gasoline in the United States. The conflict has led to the effective closure of the Strait of Hormuz, the world’s most important energy-shipping channel where about a fifth of the world’s oil flows.
Earlier, leaders in Tehran said that Hormuz was open for commercial shipping after Israel agreed to a ceasefire in Lebanon.
That led to a steep decline in oil, fuel and natural gas prices on hopes that Washington and Tehran were close to a deal to end the war and more energy supplies could transit safely through the strait.
Brent crude traded 9% lower at around US$90 a barrel by 2.09pm New York time and wiped out most of the gains that came since the onset of the war. Diesel prices in the United States and Europe were also lower.
The latest licence opens up more supplies for countries that have been struggling with mounting fuel shortages.
Some Asian nations had implored the Trump administration to renew the Russian oil waiver as the toll from the crude disruption mounts. Yet critics argued that it enriches Moscow, undermining a sanctions regime imposed after Russia’s invasion of Ukraine. — Bloomberg
