The United States has ended its month-long sanctions waiver allowing limited purchases of Russian oil, amid the ongoing US-Iran conflict and recent Strait of Hormuz reopening. Treasury Secretary Scott Bessent announced Wednesday that the temporary general license, issued in early March to stabilize global prices during wartime disruptions, expired on April 11 without renewal. This move tightens enforcement on sanctioned crude already at sea before March 5-11, impacting major importers like India.
The waiver had permitted countries to acquire Russian oil loaded prior to mid-March deadlines, injecting millions of barrels into markets strained by Iranian restrictions on key shipping lanes. Critics from both US parties argued it indirectly funded Moscow's war efforts, despite aims to curb price spikes above $100 per barrel. A parallel exemption for Iranian oil lapses April 19, signaling Washington's return to full sanctions pressure.
India, Bangladesh, and others benefited significantly, with Dhaka recently receiving diesel via pipeline amid shortages tied to Hormuz tensions. New Delhi's Russian crude imports surged in March under the grace period, but expiration forces diversification as Trump prioritizes energy leverage in Iran negotiations. Global benchmarks eased slightly post-Hormuz news, yet analysts warn of volatility without discounted supplies.
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This policy shift aligns with Trump's "very close" Iran deal rhetoric, using oil sanctions as a bargaining chip alongside naval blockades. No new exemptions are planned, per Bessent, despite earlier Reuters reports of potential extensions. The decision reflects domestic political pressures over wartime economics.
Major buyers now face secondary sanctions risks, potentially reshaping trade flows toward Middle Eastern or US sources. As ceasefires hold tenuously, the waiver's end underscores oil's role in great-power diplomacy. Energy markets monitor compliance amid fragile regional de-escalation.
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