The United States has issued a 30-day license for countries to buy Russian oil and petroleum products currently stranded at sea, in an effort to stabilize global energy markets. The move comes as the US Energy Department announced plans to release 172 million barrels of oil from its strategic petroleum reserve to curb rising oil prices. This release is part of a broader commitment by the International Energy Agency to release 400 million barrels of oil, amid the biggest oil supply disruption in history due to the war in the Middle East.
The announcement was made hours after benchmark oil prices shot above $100 a barrel, and Treasury Secretary Scott Bessent described the measure as 'narrowly tailored' and 'short-term'. The license allows for the delivery and sale of Russian crude oil and petroleum products loaded on vessels as of March 12, which will remain valid through midnight Washington time on April 11.
The US Treasury previously issued a 30-day waiver specifically for India, allowing New Delhi to buy Russian oil stuck at sea. This move is seen as an attempt to control energy prices, which have been rising due to the war in Iran and the subsequent response by Tehran.
President Donald Trump has already taken several measures to tame energy prices, including ordering the US International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf. He also mentioned temporarily waiving a shipping rule known as the Jones Act to ensure energy and agricultural products can move freely between US ports.
The White House Deputy Chief of Staff Stephen Miller stated that the president is taking every action he can to lower prices, including allowing unsanctioned oil to enter the market. This would potentially lower costs and speed up deliveries, but could also raise concerns about national security and environmental impact.
According to Fox News, there were approximately 124 million barrels of Russian-origin oil on water across 30 different locations globally as of Thursday. The US license would provide around five to six days of supply when taking into account the daily loss of oil from the Strait.
The move has been met with criticism from some lawmakers who accused President Trump of caring only about rich people. However, the administration argues that this measure is necessary to stabilize global energy markets and protect American interests.
U.S.-Israeli strikes on Iran and the subsequent response by Tehran have widened regional tensions and paralyzed shipping through the Strait of Hormuz, disrupting vital Middle East oil and gas flows and sending energy prices higher.
The situation remains volatile, with Iran's Islamic Revolutionary Guard Corps threatening to block oil shipments from the Gulf unless the US and Israeli attacks cease. The global economy is watching closely as this crisis unfolds, with oil prices continuing to rise and markets on edge.
As the situation continues to unfold, it remains to be seen how effective this measure will be in stabilizing global energy markets. However, one thing is clear: the US has taken a significant step towards opening up its market to Russian oil, which could have far-reaching implications for the global economy.
