U.S. Grants Temporary Authorization For Purchases Of Russian Oil In Transit To Stabilize Energy Markets
On March 12, 2026, the U.S. government temporarily allowed the purchase of Russian oil stranded at sea to help stabilize the global energy markets. This decision comes amid rising oil prices and tensions from the ongoing Iran conflict, as the U.S. temporarily suspends sanctions on Russian oil.
Treasury Secretary Scott Bessent explained on X that the measure was a “narrowly tailored, short-term” waiver applying only to oil already in transit.
Currently, there are around 124 million barrels of Russian oil at sea across 30 global locations, which amounts to roughly five to six days’ worth of supply. Bessent emphasized that while there is a short-term spike in oil prices, this measure is aimed at providing long-term economic benefits to the U.S.
Oil prices have fluctuated significantly due to the Iran conflict, with Brent crude nearing $120 per barrel earlier in the week, though it settled just above $100 per barrel on Thursday. The waiver was designed to help stabilize the energy market without providing major financial benefits to the Russian government. Moscow primarily receives its energy revenue from taxes assessed at the point of extraction, not from sales in transit.
The waiver applies to Russian crude products loaded onto ships by 12:01 a.m. Eastern Time on March 12, 2026, and is valid until April 11, 2026. Last week, India also received a similar 30-day waiver for purchasing Russian oil already in transit, which was seen as a quick solution to supply refineries in India.
The G7 and the EU imposed sanctions on Russian oil in 2022 following Russia’s invasion of Ukraine, including a price cap of $44.10 per barrel. The EU plans to phase out all Russian oil imports by 2027, while the U.S. banned the import of Russian oil, natural gas, and coal during the same year.
