The United States has temporarily allowed countries to purchase sanctioned Russian oil and petroleum products that are already loaded on ships at sea. The move aims to reduce the economic pressure caused by the ongoing US-Israel war with Iran. US Treasury Secretary Scott Bessent announced that the authorization is a short-term step designed to keep global energy markets stable during the conflict. The measure will remain in place until 11 April.
According to Bessent, the policy only applies to oil that is already in transit. And will not provide significant financial benefit to the Russian government. “This narrowly tailored, short-term measure applies only to oil already in transit. And will not provide significant financial benefit to the Russian government,” he said.
Recent attacks on ships and energy infrastructure in the Gulf, along with the effective closure of the crucial Strait of Hormuz shipping route, have shaken global energy markets. The waterway normally carries around 20% of the world’s oil supply. Oil prices surged above $100 per barrel on Thursday. And global stock markets declined after attackers hit three additional cargo vessels in the Gulf. At the same time, Iran’s new supreme leader vowed to continue blocking the strait.
By Friday morning in Asia, oil prices had stabilized slightly. Brent crude slipped 0.2% to $100.29 per barrel, while US-traded crude fell 0.3% to $95.41. The sudden rise in energy prices has pushed governments and international organizations to take emergency action. Know More
The International Energy Agency (IEA) announced on Wednesday that it would release a record 400 million barrels of oil from strategic reserves to help calm the market. Several Asian countries, which rely heavily on Middle Eastern oil, have also introduced measures to reduce fuel demand and control costs.
The Philippines, which imports about 95% of its crude oil from the Middle East. Has asked government workers to switch to a four-day work week to save fuel. Meanwhile, Japan, South Korea, and Thailand have announced temporary caps on petrol prices to protect consumers. Bessent emphasized that the current spike in oil prices is likely to be temporary.
“The temporary increase in oil prices is a short-term disruption that will ultimately benefit our nation. And economy in the long term,” he said. He also revealed that the US government plans to begin military escorts for ships traveling through the Strait of Hormuz once conditions allow safe passage.
“The possibility of providing military escorts was always part of our planning,” Bessent told Sky News. When asked if the escorts could begin within days, he responded, “As soon as it is possible to ensure safe passage, we will do it.” Read More
