The US Treasury Department said the waiver allows transactions involving Russian oil and petroleum products loaded onto vessels as of Friday until May 16. It replaces a previous 30-day exemption that expired on April 11 and excludes dealings linked to Iran, Cuba and North Korea, Reuters reported.
The decision forms part of Washington’s broader effort to stabilise global energy prices, which have surged during the US-Israeli conflict with Iran. It follows pressure from several Asian nations grappling with the energy shock, urging the US to ease restrictions to ensure supply reaches global markets.
Reversal by Treasury
“As negotiations with Iran gather pace, the Treasury wants to ensure oil remains accessible to those who need it,” a department spokesperson said.
The move marks a reversal from earlier remarks by Treasury Secretary Scott Bessent, who had indicated just days ago that the US would not extend waivers for Russian oil, or for Iranian oil, which is due to expire on Sunday.
Global oil prices dropped by 9 per cent on Friday to around $90 a barrel after Iran briefly reopened the Strait of Hormuz, a critical chokepoint for oil shipments. However, the International Energy Agency has warned that the conflict has already triggered one of the most severe disruptions to global energy supplies on record.
Now in its eighth week, the war has damaged more than 80 oil and gas facilities across the Middle East. Tehran has also warned it could again shut the strait if the US naval blockade of Iranian ports continues.
Rising oil prices pose a political challenge for President Donald Trump and his fellow Republicans ahead of the November midterm elections.
Washington has also faced sustained pressure from partner nations over energy costs. A US official said several countries raised the issue during meetings on the sidelines of the G20, World Bank and IMF gatherings in Washington this week. Trump also discussed oil prices in a recent call with Indian Prime Minister Narendra Modi, given India’s significant imports of Russian crude.
The waiver for Iranian oil, issued on March 20, enabled around 140 million barrels to enter global markets, easing supply constraints, Bessent had noted last month.
Concerns Over Long-Term Impact
US lawmakers from both parties have criticised the waivers, arguing they could bolster the economies of Iran and Russia while both remain engaged in conflicts involving the US and its allies.
Senior Democratic lawmakers in the US Senate sharply criticised the Trump administration for extending a waiver that allows the continued sale of sanctioned Russian oil, calling the move a “shameful” policy reversal.
In a joint statement, Democratic leaders Jeanne Shaheen, Chuck Schumer, and Elizabeth Warren of the US Senate Foreign Relations Committee condemned the decision to renew Russia General License 134, which removes sanctions risk for entities purchasing Russian oil loaded on vessels as of March 12.
The lawmakers further slammed the US Treasury Secretary, Scott Bessent, noting that the decision comes days after he said that Washington will not renew the general licence that allowed limited transactions involving Russian and Iranian oil.”We will not be renewing the general licence on Russian oil and Iranian oil. That was oil that was on the water prior to March 11th. All that has been used,” Bessent said during a White House press briefing on Wednesday.
Meanwhile, Russian presidential envoy Kirill Dmitriev welcomed the move, saying on social media that “US-Russian economic and energy cooperation will continue.” He had earlier suggested the initial waiver could release up to 100 million barrels of crude — roughly equivalent to a day’s global output.
Sanctions expert Brett Erickson of Obsidian Risk Advisors said the latest extension is unlikely to be the last.
“The conflict has inflicted lasting damage on global energy markets, and the options available to stabilise them are rapidly diminishing,” he said.
