US Extends Sanctions Waiver For One-Month Allowing India, Others To Buy Russian Oil

Washington: Amid the Iran war, global oil prices are skyrocketing, and under this pressure, the United States has now made a significant decision. President Donald Trump's administration has further extended the short-term waiver allowing India and other countries to purchase sanctioned Russian oil and petroleum products at sea.

What did the US say?

The US President's administration has further extended the temporary waiver on the purchase of Russian oil. Significantly, this decision comes just two days after US Treasury Secretary Scott Bessent itself announced that the waiver would not be extended.

The US Treasury Department issued a new notification for exemptions effective April 17, allowing countries to purchase Russian oil and petroleum products until May 16. This means that for approximately one month, no US sanctions will apply to the purchase of Russian oil loaded at sea.

The previous 30-day exemption expired on April 11. At that time, there were indications that the US would now take a tougher stance, but as the situation changed, the decision was reversed.

The US Treasury Department in its website posted the license that permitted the countries to purchase oil loaded onto vessels till May 16.

What did Us earlier say about renewing the license?

The development comes just two days after  US Treasury Secretary Scott Bessent itself announced that the waiver would not be extended, that permitted the purchase of sanctioned Russian and Iranian energy.

"We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil," Bessent said. 

What is the reason?

The ongoing war with Iran and tensions in the Strait of Hormuz have severely impacted global oil supplies. Approximately 20 per cent of the world's oil and gas supply travels through this route. As threats to this route increased, oil prices rose sharply. The challenge facing the United States was that if supply decreased further, prices would rise further, directly impacting the public. Therefore, the Trump administration provided this temporary relief to maintain supply in the market.

What impact did it have on oil prices?

Interestingly, this announcement brought some relief to the oil market. Brent crude prices fell nearly 9 per cent to around $90 per barrel, their lowest level in over a month. This decline was partly due to Iran's statement that the Strait of Hormuz had been opened to commercial vessels during the ceasefire.