WASHINGTON — In a move to shield the global economy from a widening conflict in the Middle East, the United States has announced a temporary easing of sanctions on Russian oil. The decision comes as the war with Iran drives crude prices back above the $100-per-barrel threshold, threatening to spark a fresh wave of global inflation.
The U.S. Treasury Department issued a 30-day waiver on Thursday, March 12, 2026, specifically targeting Russian oil and petroleum products that were already loaded onto vessels at sea. The maneuver is designed to release “stranded” supply into a market currently reeling from threats to the Strait of Hormuz, the world’s most critical energy chokepoint.
A “Narrowly Tailored” Stabilization Effort
U.S. Treasury Secretary Scott Bessent defended the move as a necessary measure for market stability, emphasizing that it does not represent a long-term shift in policy toward the Kremlin.
“This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government,” Bessent stated.
The waiver, which expires on April 11, 2026, allows for the sale and offloading of approximately 100 million barrels of Russian crude. According to the Treasury, because Russia derives the majority of its energy revenue from taxes assessed at the point of extraction, the sale of these already-produced barrels will not significantly pad Moscow’s war chest.
Divergent Views: Moscow vs. London
The Kremlin responded to the announcement with uncharacteristic diplomatic alignment, noting that Russia sees U.S. actions as an attempt to “stabilize energy markets” and suggesting that, for the moment, the interests of both nations are aligned.
However, the policy shift has created a clear rift with the United Kingdom. Speaking to the BBC, UK Energy Minister Michael Shanks took a hardline stance, declaring that London would not be following Washington’s lead.
- UK Position: “The UK will not loosen sanctions on Russian oil at all,” Shanks said.
- The Warning: He cautioned that any relaxation gives President Vladimir Putin an opportunity to “invest more in the Ukraine war” at a critical moment for European security.
Market Context: The Iran Crisis
The price of oil surged on Thursday as the ongoing conflict with Iran led to a near-paralysis of shipping through the Strait of Hormuz. The International Energy Agency (IEA) recently described the situation as the largest oil supply disruption in history, with flows plunging from 20 million barrels per day to “a trickle.”
| Key Metric | Status |
| Current Oil Price | > $100 per barrel |
| Waiver Duration | 30 Days (Ends April 11) |
| Volume Impacted | ~100 million barrels |
| Key Chokepoint | Strait of Hormuz |
The U.S. decision follows a similar, more limited waiver granted to India last week, signaling a growing priority within the Trump administration to tame energy costs ahead of domestic economic pressures.
