US Treasury allows sanctions waiver on Russian seaborne oil to lapse

The Trump administration on Saturday allowed a sanctions waiver to lapse that had previously allowed countries, including India, to buy Russian seaborne ​oil after a month-long extension aimed at easing oil supply shortages and ‌high prices due to Iran's closure of the Strait of Hormuz

US Treasury Secretary Scott Bessent had previously said he would not renew the general license allowing the purchase ​of Russian oil stored on tankers.

As of early afternoon Washington ​time on Saturday, no renewal notice had been posted on the ⁠Treasury website. A Treasury spokesperson declined further comment.

Two top Democratic US ​senators, Jeanne Shaheen and Elizabeth Warren, on Friday urged the Trump administration against renewing ​the waiver, arguing that it was providing revenue to Russia to aid its war in Ukraine, but there was no evidence it was bringing down fuel costs for American ​consumers.

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The prior extension was part of the Trump administration's effort to control ​global energy prices that had shot higher during the Iran war, including loans from the Strategic ‌Petroleum ⁠Reserve and a temporary waiver of a shipping rule known as the Jones Act.

In addition, US President Donald Trump has said he supported pausing the 18.4-cent-a-gallon federal tax on gasoline.

The moves have done little to calm US gasoline prices, which ​are currently at ​about $4.50 a gallon, ⁠the highest since 2022. Both domestic and international oil prices have hovered around or above $100 per barrel since the ​war began on February 28.

Trump told reporters on Friday, ​returning from ⁠Beijing, that he had discussed with Chinese President Xi Jinping possibly lifting sanctions on Chinese companies that buy Iranian oil and will make a decision soon.

India ⁠is ​the top consumer of Russian seaborne crude, and its ​purchases have been near record highs in April and May following previous sanctions waivers.