US Temporarily Lifts Sanctions on Russian Oil Trade to Counter Economic Impact of Middle East Conflict

Washington D.C. The United States has announced the temporary lifting of its sanctions on Russian oil trade. The decision was made to allow other countries to purchase Russian fuel, aiming to mitigate the economic impact of the conflict between the US and Israel against Iran.

According to US Treasury Secretary Scott Bessent, this measure was taken temporarily to maintain "stability in the global energy market" during the conflict. The US has temporarily waived the ban on purchasing Russian oil until April 11, allowing purchases only of oil loaded on Russian vessels currently at sea.

“This temporary measure is only for oil in 'transit' and will not provide significant economic benefit to the Russian government,” Bessent stated.

Russia currently reports that approximately 100 million barrels of oil are in transit. Oil prices on the global market surpassed $100 per barrel again on Thursday after at least three more oil tankers in the Gulf were attacked.

Iran has been creating blockades in the waterways used for oil transportation and attacking cargo ships. Oil production sites in the Gulf have also been targeted.

The US temporarily lifted the ban on Russian fuel one day after Iran's newly appointed Supreme Leader, Mojtaba Khamenei, declared his intention to maintain blockades in the 'Strait of Hormuz,' a key route for oil transport.

Approximately 20 percent of the world's oil exports pass through this narrow waterway. Oil tankers have been stranded in the Gulf due to the conflict. Oil supply has been affected as they cannot navigate the narrow strait between Iran and Oman.

Bessent argued that despite current oil price increases, the US and the American economy will benefit in the long term. On Wednesday, the US announced it would use 172 million liters of oil from its strategic reserves.

Meanwhile, Kirill Dmitriev, the economic envoy for Russian President Vladimir Putin, stated that the "global energy market cannot stabilize without Russian oil."

“America is understanding the reality. The global energy market cannot stabilize without Russian oil,” he wrote on Telegram. However, investor Bill Browder, who has campaigned for sanctions against senior Russian officials accused of corruption, called the decision to allow the purchase of Russian oil a “terribly” wrong decision, according to the BBC.

Ukraine has not yet commented on the US decision. However, Ukrainian President Volodymyr Zelenskyy had stated that easing sanctions would be a “serious blow” to Ukraine and a “concession” to Russia that would allow it to purchase more weapons.

French President Emmanuel Macron commented that lifting Russian sanctions simply because the 'Strait of Hormuz' is being closed is in no way justified.