America started a war with Iran and set oil markets on fire. Then it partially unfroze Russia’s oil to try to douse the flames.
Treasury Secretary Scott Bessent announced the move Thursday evening via a post on X, describing it as “narrowly tailored.”
The exemption permits countries to purchase Russian crude already loaded on vessels as of March 12. It runs until April 11.
Around 130 million barrels of Russian crude are currently stranded at sea, according to commodities tracking firm Kpler.
“To increase the global reach of existing supply,” Bessent wrote, the Treasury is “providing a temporary authorization” for those stranded shipments to reach buyers.
The decision came days after the administration tapped 172 million barrels from the Strategic Petroleum Reserve. Neither move cooled prices materially.
Brent Crude settled at $100.46 on Thursday — its highest close since Russia’s invasion of Ukraine in 2022.
The Strait of Hormuz, which carries one-fifth of global oil output, remains effectively closed. Iran has been laying mines; the U.S. military says it sank 16 minelayers this week.
Europe reacted with alarm. Britain said “all partners should maintain pressure on Russia and its war chest.” Germany said it would “not be distracted” by the Middle East war.
Ukrainian President Volodymyr Zelensky was blunt: “Lifting sanctions will, in any case, lead to a strengthening of Russia’s position.”
“It spends the money from energy sales on weapons, and all of this is then used against us,” he said in Paris alongside French President Macron.
Russia welcomed the announcement and immediately pushed Washington to go further. The Kremlin said American and Russian interests “coincide” on this particular point.
The administration is now visibly managing two contradictory impulses: punishing Russia and capping oil prices. Those two goals are structurally incompatible.