The Trump administration temporarily lifted sanctions on Russian oil “stranded at sea” Thursday in an effort to contain skyrocketing energy prices due to Iranian threats against tanker ships.
Treasury Secretary Scott Bessent described the move as one of President Trump’s “decisive steps to promote stability in global energy markets” and keep oil prices low amid the “threat and instability posed by the terrorist Iranian regime.”
“To increase the global reach of existing supply, [Treasury] is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea,” Bessent wrote on X.
The treasury secretary noted that the “narrowly tailored, short-term measure” will only apply to oil “already in transit.”
There are an estimated 124 million barrels of oil originating from Moscow at sea, which is enough for about five to six days of supply, according to CNBC.
Bessent also asserted that it “will not provide significant financial benefit to the Russian government,” adding that the Kremlin “derives the majority of its energy revenue from taxes assessed at the point of extraction.”
“President Trump’s pro-energy policies have driven U.S. oil and gas production to record levels, contributing to lower fuel prices for hardworking Americans,” the treasury secretary continued.
“The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term.”
The exemptions will be in place until April 11.
As the war against Iran continues, oil prices surged to $100 per barrel on Thursday.
The price of a barrel of Brent crude, the international standard, climbed 9.2% to settle at $100.46.
Iranian Supreme Leader Mojtaba Khamenei, meanwhile, vowed Thursday to keep the Strait of Hormuz closed as a “tool to pressure the enemy.”
The strait is a critical chokepoint through which roughly 20% of the world’s oil and liquid natural gas passes. It is also the only sea route that can move oil, natural gas and other cargo out of the Persian Gulf.
“Certainly, the lever of closing the Strait of Hormuz must continue to be used,” said the hardline 56-year-old successor to his father, Ayatollah Ali Khamenei.
Iran has attacked at least seven ships in the Persian Gulf since Wednesday.
