The U.S. Temporarily Eases Russian Oil Sanctions Amid Iran Conflict
Written By: Sofía García Andrés
On March 12th, the U.S. Department of the Treasury issued a temporary general license allowing the sale of Russian oil already loaded onto tankers, a move aimed at stabilizing global energy markets amid disruptions linked to the escalating conflict involving Iran. The license allows Russia to sell approximately 128 million barrels of oil that were already loaded onto tankers, following production and transportation disruptions across Gulf states and the effective closure of the Strait of Hormuz, a critical corridor for global oil and gas transit.
As the Trump administration attempts to contain surging global energy prices following the outbreak of the war in Iran, the exemptions will be in place until April 11 and only apply to Russian oil loaded onto tankers on or before March 12. Treasury officials estimate that the measure will increase global oil supply in the short term, curbing prices and reducing the economic impact of rising energy prices on American consumers.
Russia has faced economic sanctions since its full-scale invasion of Ukraine in 2022, including a price cap on Russian oil and efforts to dismantle Russia’s “shadow fleet,” used by exporters to circumvent Western restrictions. While Treasury Secretary Scott Bessent wrote on social media that the policy represents a “narrowly tailored, short-term measure,” Democrats have criticized the decision, arguing that it could weaken the economic pressure imposed on Moscow since the start of the war in Ukraine. Some analysts have also questioned the policy’s effectiveness. Energy market experts note that Russia has continued exporting large volumes of oil despite the sanctions imposed since 2022, suggesting that allowing additional shipments already at sea may have only a limited impact on global energy prices.
Russia is expected to gain more than $1.6 billion per month from each $10 increase in the price of its crude. Russian officials have used Washington’s decision to highlight their country’s central role in global energy markets. Kirill Dmitriev, Russia’s special envoy for foreign investment and economic cooperation, wrote on Telegram that without Russian oil, the global energy market could not remain stable. In response to this policy shift towards Russia, European countries have rejected the ease in sanctions unilaterally imposed by the United States, even as Europe faces rising energy prices too. Paula Pinho, spokeswoman for the European Commission, warned that relaxing sanctions on Russia in response to an energy crisis could represent a “total strategic blunder.” Ukrainian President Volodymyr Zelensky also criticized the move, saying it would not contribute to efforts to end the war in Ukraine. Both French President Emmanuel Macron and German Chancellor Friedrich Merz expressed concern and continued support for the strengthening of Ukraine in its current existential conflict against Russia, which the latter claimed cannot be overlooked by the developments of the war in Iran.
Experts in eastern European geostrategy and energy policy look at Washington’s decision with a particular concern about the indefinite extension of the sanctions relief and, therefore, as the effective conclusion of the oil sanctions on Russia.