To stabilize the global energy market severely affected by the Iran conflict, the US Treasury Department issued a temporary 30-day authorization on Thursday (March 12), allowing countries to purchase Russian crude oil and petroleum products currently stuck at sea.
According to the latest announcement from the Treasury Department, the scope of this temporary permit is limited to Russian energy products that were already loaded onto ships before 12:01 am Eastern Time on March 12.
CNBC reported that as of March 12, approximately 124 million barrels of Russian crude oil and petroleum products from Russia were scattered across 30 locations globally, which could supply for five to six days.
The permit is valid until April 11 and aims to increase market supply and alleviate the upward pressure on oil prices caused by geopolitical tensions.
US Treasury Secretary Scott Bessent explained on social media that this is a “tailored short-term measure” and “applies only to oil already in transit and will not bring significant financial benefit to the Russian government.”
Bessent further clarified that since the main energy revenue for the Russian government comes from taxes levied at the point of extraction, allowing the subsequent trading of these shipped products will not significantly increase Russia’s war funds.
Following Iran’s announcement of blocking the Strait of Hormuz, international oil prices have surged to over $100 per barrel, threatening global energy supply.
Bessent emphasized that President Trump is taking decisive measures to stabilize the market and deal with the threats and instability brought by the “terrorist Iranian regime.”
This measure is an extension of the waiver issued last week for India. Unlike the initial version limited to Indian buyers, the new version of the permit will apply globally and extend the loading deadline from March 5 to March 12. The new terms also explicitly exclude Iran from the purchasing entities.
This 30-day permit reflects the US government’s pragmatic strategy to prioritize global energy security and stable economic livelihood while maintaining pressure on Russia’s sanctions.
Apart from easing restrictions on stranded Russian oil at sea, the US government has also introduced a series of measures to curb oil prices, including:
Releasing strategic oil reserves:
The US Department of Energy has announced the release of 172 million barrels of crude oil from the Strategic Petroleum Reserve (SPR) as a core part of the International Energy Agency (IEA) releasing 400 million barrels of oil action among its 32 member countries.
Financial and insurance support:
Trump has directed the US International Development Finance Corporation (DFC) to provide political risk insurance and financial guarantees for maritime trade in the Middle East.
Military escorts:
Trump stated that the US Navy may provide military escorts for oil tankers in the region. Bessent further mentioned during a media interview on Thursday that the US Navy would start escorting oil tankers as soon as “military conditions allow.”