US Extends Russian Oil Waiver to May 16 Amid Global Energy Turmoil

The earlier 30-day waiver had expired on April 11.

The renewed license, issued on Friday (local time), is part of the administration's broader effort to stabilise global energy prices, which have surged amid the ongoing US-Israeli conflict with Iran.

The decision comes against the backdrop of several countries facing problems with the impact of rising energy costs and supply disruptions.

As per the official notification, "(a) Except as provided in paragraph (b) of this general license, all transactions prohibited by the above-listed authorities that are ordinarily incident and necessary to the sale, delivery, or offloading of crude oil or petroleum products of Russian Federation origin loaded on any vessel, including vessels blocked under the above-listed authorities, on or before 12:01 a.m. eastern daylight time, April 17, 2026, are authorised through 12:01 a.m. eastern daylight time, May 16, 2026."

At the same time, the waiver continues to impose strict restrictions on dealings involving certain countries.

"(b) This general license does not authorise: (1) Any transaction involving a person located in or organised under the laws of the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Covered Regions of Ukraine, as defined by E.O. 14065, the Crimea Region of Ukraine, as defined by E.O. 13685, or any entity that is owned or controlled by or in a joint venture with such persons," it added.

The move comes shortly after remarks by US Treasury Secretary Scott Bessent, who had indicated that Washington does not intend to continue such waivers indefinitely amid rising geopolitical tensions.

"We will not be renewing the general license on Russian oil and Iranian oil. That was oil that was on the water before March 11. All that has been used," Bessent said during a media briefing on Wednesday.

Meanwhile, global oil prices saw a sharp decline of around 9 per cent on Friday, settling near $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a key global energy transit route.

However, the broader conflict has already triggered what the International Energy Agency described as the worst disruption to global energy supplies in history.

The war, which entered its eighth week on Saturday, has reportedly damaged more than 80 oil and gas facilities across West Asia.

Meanwhile, Tehran has also warned that it could shut the Strait of Hormuz again if the US Navy continues its blockade of Iranian ports.

Commenting on the waiver's extension, Russian presidential envoy Kirill Dmitriev said in a social media post, "US-Russian economic and energy cooperation will continue."

He had earlier noted that the initial waiver on Russian oil could free up to 100 million barrels of crude, roughly equivalent to nearly a day's global oil output.

- IANS