The Trump administration allowed a waiver that encouraged more Russian crude sales to lapse, even as the Iran war stokes concerns about global oil supplies and higher fuel costs. The expiration effectively ends for now a brief period where the administration eased sanctions on some Russian oil. The Trump administration issued an initial waiver in March and a second after the first expired in April — both applying only to a subset of Russian oil that had already been loaded onto tankers.
The waivers have been controversial, especially with European allies who see sanctions as essential to starving Russia of crude revenue. But some countries, including India and Indonesia, had lobbied for extended waivers as the Iran war and near-closure of the Strait of Hormuz deprive global markets of millions of barrels daily. Treasury Secretary Scott Bessent said the shift came after more than 10 of the most vulnerable and poorest countries in terms of energy approached him seeking an extension.
Just as in April, lobbying from Asian allies and more tightness in the oil market could still prompt the administration to issue a new waiver later. The administration also allowed a separate temporary waiver enabling purchases of some Iranian crude to expire in April. Brent crude, the global benchmark, has surged since the Iran war began, driving higher prices for gasoline, diesel and other products. The US government has taken several other steps to tame impacts from the energy shock, which the IEA has called the biggest supply disruption in the history of the oil market, including allowing foreign vessels to carry crude between American ports through mid-August and temporarily waiving some domestic fuel specifications.
This story was originally featured on Fortune.com.
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