Trump admin lifts sanctions on Russian oil to curb volatile crude prices amid Iran war

The US Treasury Department on Thursday (Mar 12) announced a temporary 30-day waiver on sanctions for Russian oil currently at sea, a move aimed at stabilising global energy markets as prices hover near $100 per barrel amid the Iran war. Treasury Secretary Scott Bessent confirmed the exemption will remain in effect until April 11, 2026, allowing hundreds of millions of barrels of crude to reach buyers. This "emergency release" comes as the Donald Trump administration scrambles to offset the supply shock caused by the ongoing Iran War and the blockade of the Strait of Hormuz.

Russia lauds Trump admin waiver

Soon after the US announced a sanctions waiver for Russian oil, Moscow's economic envoy Kirill Dmitriev on Friday (Mar 13) said that the global energy market "cannot remain stable" without his country's oil.

"The United States is effectively acknowledging the obvious: without Russian oil, the global energy market cannot remain stable," Dmitriev posted on Telegram.

‘Set on fire’: Iran's threat as oil pushes $100 a barrel

As Brent crude inched further above $100 a barrel and stocks fell in early Asian trade on Friday, Iran vowed to attack oil resources in the Middle East and keep choking the Strait of Hormuz, threatening to "set the region's oil and gas on fire". A spokesperson for Tehran's military central operational command, in a statement, vowed that they will "set the region's oil and gas on fire with the slightest attack on Iran's energy infrastructure and ports".

The punishing sanctions by the US and the Group of 7 advanced economies on Russian oil have been in place since 2022. These sanctions included a price cap on Russian oil and a crackdown on Moscow's so-called "shadow fleet", i.e., unmarked vessels that oil exporters used to evade sanctions.

Earlier, US President Trump had sought to blame Russian oil exports for the Ukraine war, which crossed the four-year mark on February 24, 2026. However, with Trump's war on Iran leading to economic turmoil with the price of crude oil rising to $100 and more, the US last week granted India a 30-day waiver to buy Russian oil.
Bessent insisted that the temporary oil trade won't benefit Russia significantly. “To increase the global reach of existing supply, Treasury is providing a temporary authorisation to permit countries to purchase Russian oil currently stranded at sea,” he wrote in a social media post. “This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction.”

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