Oil products tankers Vela (Singapore, L) and Jag Sparrow (Bahamas, R) are moored at the berth of St. Petersburg Oil Terminal, in the Port of St. Petersburg, Russia, 26 September 2025. (File photo: VCG)
The United States Treasury eased sanctions on Russian oil on Thursday to curb global energy prices driven by its war with Iran, US Treasury Secretary Scott Bessent said. Oil prices dropped on Friday morning following the announcement.
Brent fell 71 cents to $99.75 per barrel by 01:23 GMT, and US West Texas Intermediate crude fell 88 cents to $94.85, Reuters reported.
The new license issued on Thursday by the Office of Foreign Assets Control under the US Department of the Treasury allows countries to purchase Russian crude and petroleum products loaded onto vessels as of March 12, 2026. The authorization lasts 30 days, allowing these shipments until 00:01 EST on April 11.
The eased sanctions aim to "increase the global reach of existing supply," and only allow countries to purchase "Russian oil currently stranded at sea," Bessent said on X, stressing this "narrowly tailored, short-term measure" will not provide the Russian government with "significant financial benefit."
The US Treasury previously waived restrictions on Russian oil specifically for Indian refineries, according to a license issued by the department on March 5.
Brent rose back above $100 per barrel on March 12 following escalating attacks on refineries and oil tankers in the Persian Gulf, with Mojtaba Khamenei, Iran's new supreme leader, vowing to block the Strait of Hormuz in his first statement.
US President Donald Trump said on Thursday that the US will "make a lot of money" amid the energy price hike, as the world's largest oil-producing country. The comment sparked criticism from US lawmakers, with Democratic Senator Mark Kelly of Arizona saying Trump "only ever cared about rich people."
(With inputs from Reuters)