The Trump administration announced on Friday (April 17) that it will extend the waiver on sanctions for Russian crude oil and petroleum products shipping. The permit issued by the Treasury Department allows countries to continue purchasing Russian crude oil loaded on ships prior to last Friday until May 16.
This decision comes as the United States and Israel enter the eighth week of the war with Iran, and Washington is working hard to contain the surging global energy prices due to the tumultuous situation in the Middle East.
The Treasury Department’s decision this time overturns its previous stance. Just two days ago, Treasury Secretary Scott Bessent had publicly stated that the Trump administration would no longer renew waivers for sanctions on Russian and Iranian oil.
Regarding this change, a Treasury Department spokesperson stated: “As negotiations (with Iran) accelerate, the Treasury Department hopes to ensure that those in need can access oil.”
This decision was reached under strong lobbying from multiple Asian countries. Troubled by energy shortages, countries like India and the Philippines have recently been actively urging the U.S. to open up alternative supply pipelines.
Last Friday, the Philippine Ambassador to the U.S., Jose Manuel Romualdez, stated that the country is pushing for the extension of the waiver.
A U.S. official told Reuters this week that at the sidelines of the G20, World Bank, and International Monetary Fund meetings held in Washington, countries also requested the U.S. to extend this waiver.
This week, President Trump discussed the issue of oil prices with Indian Prime Minister Narendra Modi during a phone call.
However, this move has sparked debate within the U.S. political sphere. Democrats, including Senate Minority Leader Chuck Schumer, believe that this decision will benefit Russia. These lawmakers argue that Russia’s oil revenue nearly doubled in March and are concerned that this will weaken Western economic pressure on the Kremlin and prolong the Russia-Ukraine conflict.
Currently, the global energy market remains highly unstable. Although Iranian Foreign Minister Abbas Araghchi stated on Friday that, in compliance with the ceasefire agreement in Lebanon, the Hormuz Strait is “completely open” to all commercial vessels. However, based on tracking data, due to security concerns, the number of physically passing ships remains very low, with many oil tankers choosing to turn back or remain idle.
Brett Erickson, a sanctions expert from consultancy firm Obsidian Risk Advisors, warned Reuters that this may not be the final extension of the Russian oil waiver.
He cautioned: “This conflict has caused long-term damage to the global energy market, and the tools to stabilize the market are nearly depleted.”