US Extends Russian Oil Sanctions Waiver Despite Top Official’s Denial

The US Treasury Department has renewed its temporary exemption from sanctions on Russian oil shipments, just days after Treasury Secretary Scott Bessent categorically ruled out any extension. The new general licence, published on Friday, permits the sale, transport and unloading of Russian crude and petroleum products loaded onto tankers before 17 April, with the waiver set to expire on 16 May. The move, which replaces a previous licence that lapsed on 11 April, marks a sharp policy reversal that underscores the Trump administration’s struggle to balance sanctions enforcement with energy market stability.

Viewed from Washington, the decision is a direct response to the supply shocks sparked by the military conflict with Iran. Oil prices had surged as the Strait of Hormuz – a vital chokepoint for global crude – faced disruption, but they fell roughly 9 per cent on Friday after Tehran announced the strait would remain open for commercial shipping during the remaining ceasefire period. Brent crude futures settled at $90.38 a barrel, down by over nine dollars. By extending the Russian oil waiver, the US aims to avert further price spikes while continuing to restrict transactions linked to Iran, North Korea, Cuba and occupied Ukrainian territories.

In Moscow, the extension is interpreted as a limited reprieve rather than a strategic shift. Russian officials had already prepared for a negative decision, and state-aligned media note that the original licence was granted in March solely for oil loaded by 12 March. The new document explicitly excludes transactions involving Iranian-origin goods and maintains sanctions on the so-called “ghost fleet” of vessels used by Russia to bypass earlier restrictions. Analysts in London and the Middle East observe that the waiver smooths logistical chains for shipments already at sea, but leaves the broader sanctions architecture intact.

The episode reveals a growing tension within American foreign economic policy. Secretary Bessent had told reporters on Wednesday that no extension would be forthcoming, either for Russian or Iranian oil. Yet the Treasury’s Friday action directly contradicts that stance, highlighting how the fallout from the Iran war has forced an urgent recalibration. With the new licence set to expire on 16 May, traders and governments alike are now watching whether the administration will again blink – or finally allow the existing sanctions to bite fully when the supply picture stabilises.