The US has extended its waiver for another 30 days, allowing vulnerable countries to buy Russian oil already at sea, Treasury Secretary Scott Bessent said. It is a second such extension, and one he had told European allies last month he would not make, according to Politico.
The waiver keeps Russian oil, and the revenue financing the Russian war, flowing at a moment when the European Commission and Kyiv have been pressing Washington to do the opposite and tighten the squeeze.
Bessent's stated reason is the Iran war: Tehran's retaliation has choked the Strait of Hormuz, through which roughly a fifth of the world's oil passes, and the International Energy Agency says commercial inventories are draining fast.
At the same Paris meeting, Bessent urged allies to strengthen sanctions enforcement on Iran.
Waiver Bessent had ruled out, extended second time
The measure is a "temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea," Bessent wrote on X.
"This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries," he stated.
It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil, Bessent added.
Iran-war supply shock US says, is forcing its hand
The supply crisis is real. Iran's retaliation has virtually blocked the Strait of Hormuz, and IEA Executive Director Fatih Birol warned that commercial oil inventories "are now being depleted very quickly," with only weeks of cover left, according to AFP.
G7 countries coordinated a release of strategic reserves in March, after the conflict began. French Finance Minister Roland Lescure said further releases were not on the agenda of the G7 leaders' summit France hosts on 15–17 June, but told reporters that "in the coming weeks and months this issue could certainly arise."
What does it mean for Russia's squeeze?
By keeping cargoes moving to buyers such as China and India, the waiver relieves pressure on the very revenue stream Western sanctions are meant to constrict, RFE/RL reported. The decision underscores the balancing act facing Washington — sustaining pressure on Moscow over Ukraine while avoiding a wider energy shock.
