U.S. Extends Sanctions Waiver on Russian Oil Amid High Gas Prices
The U.S. Treasury Department has extended a sanctions waiver on Russian oil for an additional month, aiming to alleviate high gas prices.
The U.S. Treasury Department has extended a sanctions waiver on Russian oil for an additional month, aiming to alleviate high gas prices. The renewed license, effective until May 16, supersedes the previous waiver that expired on April 11. This decision follows the administration's earlier efforts to ease energy market disruptions by allowing the purchase of Russian crude oil.
Treasury Secretary Scott Bessent had previously stated that the government would not renew the sanctions exemption on Russian oil stranded at sea. However, the latest extension indicates a shift in policy amid ongoing economic pressures.
The announcement coincided with Iran's declaration that the Strait of Hormuz is now open to commercial shipping. President Trump commented on social media that the "Hormuz Strait situation is over" and claimed that Iran had agreed to keep the waterway open permanently. Iranian Foreign Minister Seyed Abbas Araghchi, however, stated that the strait would remain open "for the remaining period of cease-fire," with the current cease-fire set to expire next week.
Despite these developments, oil and gas prices have remained elevated since the conflict began on February 28. The price of regular gasoline in the United States increased by 25% from February to March, marking the highest monthly percentage increase on record. Brent crude prices have also remained high, despite the release of oil from strategic reserves.
While the reopening of the Strait of Hormuz led to a sharp decline in oil prices on Friday, the future stability of the waterway remains uncertain. Iran has indicated that it may close the strait again if the U.S. military continues its blockade of Iranian ports.
