US Extends Russian Oil Waiver for One Month After Iran War Pressure
The Trump administration on Friday extended a waiver that lets countries buy Russian oil for about one month. The decision came just days after the US said it would not renew the special exemption from sanctions.
The Trump administration on Friday extended a waiver that lets countries buy Russian oil for about one month, reversing course just days after ruling out renewal of the exemption.
The US Treasury Department issued the order late Friday extending the waiver from sanctions on Russian petroleum products. The original waiver had expired over the weekend, leaving governments uncertain about oil purchases.
The about-face came after pressure from countries dealing with tensions from the Iran conflict. Oil markets had grown jittery as the waiver's future remained unclear, with Iran saying the Strait of Hormuz was "completely open" to commercial vessels as oil prices fell.
Lawmakers have criticized the administration for going easy on Moscow as Russia's war on Ukraine continues. The sanctions were designed to cut off funding for Russia's military operations by limiting oil sales.
The one-month extension gives the administration time to balance competing pressures: punishing Russia while avoiding oil supply disruptions that could spike gas prices globally.
This policy flip affects global oil prices and gas costs. Countries worried about oil supplies during Middle East tensions pushed for the extension, showing how wars can force changes to economic punishment policies.
Watch for whether the waiver gets extended again next month or if the administration lets it expire permanently.
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