A source familiar with the matter stated on Monday that the U.S. Treasury Department will extend the sanctions waiver for Russian seaborne crude oil, which expired last Saturday. The extension comes in response to requests from multiple countries seeking to continue their purchases.
According to the source, the waiver will be renewed for an additional 30 days. This action was taken at the request of several poor and vulnerable nations that have been unable to secure oil supplies from the Gulf region due to the war in Iran and the blockade of the Strait of Hormuz.
This marks the second time the Treasury Department has extended the waiver after its expiration. Initially issued in March, the waiver was designed to alleviate oil supply shortages and curb price surges triggered by U.S. and Israeli attacks on Iran by releasing sanctioned Russian crude and refined products stranded on tankers.
While the measure has not effectively lowered oil prices, it has benefited India, which was one of the largest buyers of Russian oil before the U.S. imposed sanctions on Russian oil giants due to the Russia-Ukraine conflict.
On Monday, benchmark Brent crude futures rose approximately 1.5% to around $111 per barrel, as persistent supply concerns outweighed the impact of the Russian waiver extension and news of a potential temporary lifting of U.S. sanctions on Iranian oil.
U.S. Treasury Secretary Bessent, attending the G7 finance ministers' meeting in Paris, expressed hope that the G7 and other allies would enforce sanctions against Iran more rigorously.
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