Due to the Iran war causing instability in the global energy market, the United States has temporarily granted an exemption for purchasing Russian oil. Washington has issued a 30-day special permission (waiver) for buying Russian oil and petroleum products stuck at sea.

The United States Department of the Treasury announced this decision on Thursday (March 12). US Treasury Secretary Scott Bessent stated that this step was taken to stabilize the global energy market, which has become volatile due to the Iran war.

Following this announcement, oil prices were observed to drop slightly in Asian markets on Friday morning.

Increased tensions in the Middle East, particularly severe disruptions to oil and gas transportation through the Strait of Hormuz, caused global fuel prices to rise rapidly.

To manage the situation, President Donald Trump’s administration has already announced the release of 172 million barrels of oil from strategic reserves. Additionally, 32 member countries of the International Energy Agency (IEA) are planning to release approximately 400 million barrels of oil into the market.

The IEA stated that the ongoing conflict in the Middle East could create the biggest oil supply crisis in history.

According to the license issued by the US Treasury, Russian crude oil and petroleum products loaded onto vessels by March 12 can be supplied and sold until April 11.

However, the European Union criticized this decision. Ursula von der Leyen stated that now is not the time to ease sanctions against Russia.

Analysts believe that the US took this temporary decision to avoid a major shock to the energy market, as the Iran war’s impact had pushed oil prices above $100 per barrel.

Source: Reuters.