The United States has temporarily permitted countries to purchase sanctioned Russian oil and petroleum that is already being transported at sea, as part of efforts to reduce the economic pressure caused by the ongoing conflict between the US, Israel, and Iran.
US Treasury Secretary Scott Bessent explained that the decision is a short-term step aimed at maintaining stability in global energy markets during the conflict. He noted that the authorization will remain valid until April 11.
Bessent stressed that the measure only applies to oil cargoes that are already in transit and is designed in a way that will not generate significant financial gains for the Russian government.
Global energy markets have been shaken by attacks on ships and energy facilities in the Gulf region, along with the effective closure of the strategically important Strait of Hormuz.
The situation pushed oil prices back above $100 per barrel on Thursday, while stock markets declined after three additional cargo vessels were reportedly struck in the Gulf. Iran’s newly appointed supreme leader has also vowed to continue blocking the strait, through which about one-fifth of the world’s oil supply normally passes.
By Friday morning in Asian trading, oil prices showed slight declines. Brent crude dropped 0.2% to $100.29 per barrel, while US crude slipped 0.3% to $95.41.
The surge in energy prices has prompted responses from governments and international agencies. The International Energy Agency announced plans on Wednesday to release a record 400 million barrels of oil from reserves to help stabilize supply.
Several Asian governments that rely heavily on Middle Eastern oil have also introduced measures to reduce fuel consumption. In the Philippines, where about 95% of crude oil imports come from the Middle East, the president has directed public sector workers to adopt a four-day work week to conserve fuel.