The United States has renewed a temporary waiver allowing countries to continue purchasing sanctioned Russian oil at sea, a move aimed at easing strain on global energy markets as the conflict involving Iran continues to disrupt supply.
The waiver, issued by the US Treasury Department on Friday, permits the purchase of Russian oil and petroleum products loaded onto vessels through May 16. It replaces a previous 30-day exemption that expired earlier this month. The measure does not apply to transactions involving Iran, Cuba, or North Korea.
Officials said the decision is part of a broader effort to stabilise oil markets, which have been shaken by the ongoing war in the Middle East. A Treasury spokesperson noted that as diplomatic efforts with Iran gain pace, ensuring sufficient oil supply remains a priority for countries facing rising energy costs.
The extension comes despite recent remarks from Treasury Secretary Scott Bessent, who had indicated that the administration would not renew similar waivers. The shift highlights growing concern within Washington over the economic impact of high oil prices, particularly as global markets remain volatile.
Energy prices have surged in recent weeks, driven by disruptions linked to the conflict. The International Energy Agency has described the situation as one of the most severe supply shocks in history, with damage reported at more than 80 oil and gas facilities across the Middle East.
Although oil prices briefly dropped by around 9% to near $90 a barrel after Iran temporarily reopened the Strait of Hormuz, uncertainty remains high. Tehran has warned it could shut the critical shipping route again if US naval actions against its ports continue. The strait is a vital corridor for global energy flows, and any renewed closure could tighten supply further.
The waiver decision follows appeals from several countries, particularly in Asia, which have been hit hard by rising fuel costs. Sources indicated that the issue was raised during recent international meetings, including gatherings linked to the Group of 20, the World Bank, and the International Monetary Fund. Indian Prime Minister Narendra Modi also discussed oil supply concerns in a recent call with US President Donald Trump.
However, the move has drawn criticism from lawmakers in Washington, who argue that allowing continued purchases of Russian oil could undermine efforts to limit Moscow’s revenues during its war in Ukraine. European leaders have also voiced concern, with some warning that easing restrictions sends mixed signals to allies.
Analysts say the waiver may provide short-term relief but does little to address deeper structural pressures in global energy markets. With limited tools left to manage supply disruptions, further policy adjustments may be needed if instability persists.
