The US Treasury Department has temporarily extended the suspension of most sanctions on Russia’s oil industry until 16 May, following a sharp drop in global oil prices driven by increased supply through the Strait of Hormuz.
In March, the US government had previously lifted sanctions on Russian oil stored at sea to curb soaring oil prices.
The suspension covers all operations related to the loading and delivery of oil from Russia, including vessels belonging to Russia’s so-called “shadow fleet” that were previously under sanctions.
However, transactions involving Iran, North Korea, Cuba, and the Russian-occupied regions of Ukraine, including Crimea, remain strictly prohibited.
US Treasury Secretary Scott Bessent stated on Wednesday that the suspension would not be extended beyond the initial period.
“We will not renew the licence on Russian oil,” Bessent said during a press conference.
The US government enforces sanctions on oil resources from Russia and Iran to cut off revenue streams for these nations.
The measures aim to penalise Russia for its invasion of Ukraine and Iran for its nuclear programme and funding of armed groups like Lebanon’s Hezbollah.
In March, Washington introduced a temporary exemption to enable the sale of oil from these countries, addressing price surges caused by the conflict in the Middle East.
