U.S. Allows Limited Purchases of Sanctioned Russian Oil to Stabilise Markets
The United States has temporarily authorised countries to purchase sanctioned Russian oil and petroleum products that are already being transported at sea, in a move aimed at stabilising global energy markets during the conflict involving Iran.
U.S. Treasury Secretary Scott Bessent said the measure is designed to reduce the economic shock from the ongoing war involving the United States and Israel against Iran. The authorisation will remain in place until April 11.
«This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government,» Bessent said.
Markets shaken by Gulf disruptions
Energy markets have been rattled by attacks on vessels and infrastructure in the Gulf region, along with the effective closure of the Strait of Hormuz, a key maritime corridor through which about one fifth of the world’s oil normally passes.
Oil prices climbed above $100 a barrel on Thursday after three additional cargo vessels were struck in the Gulf and Iran’s new supreme leader vowed to continue blocking the waterway.
In Friday morning trading in Asia, Brent crude slipped 0.2% to $100.29 a barrel, while U.S.-traded oil fell 0.3% to $95.41.
Governments respond to energy shock
Authorities worldwide have begun introducing measures to limit the impact of rising fuel costs.
The International Energy Agency announced on Wednesday that member countries would release a record 400 mln barrels of oil from strategic reserves.
Several Asian governments have also introduced policies to ease pressure on consumers. In the Philippines, which imports about 95% of its crude oil from the Middle East, the president urged public sector workers to adopt a four-day working week to reduce fuel consumption.
Meanwhile, Japan, South Korea and Thailand have introduced caps on petrol prices.
Bessent said the surge in oil prices would likely prove temporary.
«The temporary increase in oil prices is a short-term disruption that will deliver major long-term benefits to our nation and economy,» he said.
He also indicated that U.S. forces could begin escorting ships through the Strait of Hormuz once conditions allow safe passage, noting that such an option had been included in contingency planning.
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