The U.S. Treasury announced eased sanctions on Russian oil exports Thursday in a bid to stabilize global energy markets, triggering an immediate drop in crude prices. Brent crude fell to $99.75 per barrel Friday morning following the decision, with analysts citing reduced supply concerns.
The new 30-day license permits countries to purchase Russian oil loaded onto vessels by March 12, 2026, with deliveries authorized until April 11. Treasury Secretary Scott Bessent described the measure as a "narrowly tailored" solution to release "stranded" shipments without significantly benefiting Moscow financially.
This follows a March 5 exemption granted to Indian refineries and comes amid heightened Middle East tensions. Oil prices had surged above $100 per barrel Wednesday after Iran's Supreme Leader Mojtaba Khamenei threatened to block the Strait of Hormuz following refinery attacks in the Persian Gulf.
U.S. President Donald Trump defended the policy shift Thursday, stating America would profit as the world's top oil producer during price fluctuations. The remarks drew criticism from Democratic lawmakers, with Senator Mark Kelly accusing the administration of prioritizing corporate interests.
Market watchers caution the relief could be temporary, given ongoing geopolitical risks and the limited duration of sanctions relief. Energy analysts will closely monitor April delivery volumes and OPEC's response to these developments.
