US Temporarily Lifts Some Russian Oil Sanctions Amidst Global Supply Concerns

Washington is temporarily easing some sanctions on Russian oil, a move prompted by escalating global anxieties over rising crude prices fueled by disruptions in the Middle East. The decision, announced Thursday, allows for the purchase of Russian oil already in transit, but has drawn criticism from key allies.

Rationale Behind the Move

The US Treasury Department issued a license permitting the delivery and sale of sanctioned seaborne Russian crude and petroleum products loaded on vessels as of March 12, 2026, authorizing those shipments through April 11, 2026. Treasury Secretary Scott Bessent explained the measure is “narrowly tailored, short-term” and aimed at mitigating a surge in prices following disruptions in the Strait of Hormuz CNN. Bessent emphasized that the authorization applies only to oil already in transit and will not significantly benefit the Russian government, which primarily derives revenue from taxes at the point of extraction CNBC.

Global Reaction and Concerns

The US decision has faced opposition from other G7 nations. German Chancellor Friedrich Merz stated Friday that all other G7 countries disagreed with the US move AP News. Canadian Prime Minister Mark Carney also affirmed his country will maintain its sanctions on Russia and its shadow fleet of oil transports AP News.

Impact on Oil Prices

Despite the US move, oil prices have remained elevated. Brent crude, the global benchmark, fell 1.3% to just over $99 a barrel on Friday, March 13, 2026, after settling at $100.46 on Thursday – the highest level since 2022 CNN. WTI, the US benchmark, dropped 2% to $93.70 a barrel. The surge in crude prices is largely attributed to the effective closure of the Strait of Hormuz, a critical waterway for global oil supply, through which approximately one-fifth of the world’s oil passes CNN.

Current Situation and Oil Supply

As of March 12, 2026, approximately 124 million barrels of Russian-origin oil were at sea across 30 locations globally, representing roughly five to six days of supply CNBC. The situation remains fluid as geopolitical tensions in the Middle East continue to impact global energy markets.

The US decision reflects a delicate balancing act between maintaining pressure on Russia and ensuring global energy security amidst escalating geopolitical risks.