The United States has issued a temporary 30-day authorization for the purchase of Russian oil currently stranded at sea to prevent a global energy collapse. Announced by Treasury Secretary Scott Bessent, the move is designed to counteract the price spikes caused by the ongoing war between the US, Israel, and Iran. With fuel prices up nearly 70 cents per gallon in the US, the administration is prioritizing market liquidity over strict sanction enforcement.
The conflict has targeted the Strait of Hormuz, a critical global trade route that handles roughly 20% of the world’s oil and gas. Iranian forces have reportedly mined the passage, and Tehran has pledged to stop all regional energy exports in response to US and Israeli attacks. This bottleneck has sent the price of Brent crude soaring past $100, a level not seen in four years.
Bessent stated that the waiver is a “short-term measure” that applies only to oil already on the water, estimated at 124 million barrels. The US claims this will not provide a windfall for the Kremlin because the majority of Russian oil wealth is derived from taxes assessed during extraction. The goal is to provide a buffer for global refiners who are currently facing a severe shortage of physical crude.
This decision has exposed a divide within the G7, as leaders like France’s Emmanuel Macron argue that the Iranian war should not lead to any concessions for Russia. Meanwhile, Russia has used the opportunity to claim that the US is finally realizing the necessity of Russian energy for global stability. To further combat the crisis, the IEA has authorized the release of 400 million barrels of emergency crude from its member nations.
For President Trump, the rising cost of energy represents a significant hurdle as the midterm elections approach in November. While he has publicly stated that high prices benefit the US as a top producer, the domestic impact on voters remains a major concern. The 30-day waiver is a strategic move to manage the immediate crisis while the administration pursues its long-term goals in the Middle East.