US Extends Waiver for Russian Oil Sales Amid Global Energy Crisis

The U.S. Department of the Treasury has extended a waiver allowing the sale of Russian oil loaded onto vessels until May 16. This decision aims to stabilize soaring global energy prices amid ongoing geopolitical tensions, particularly the U.S.-Israeli conflict with Iran. The waiver maintains strict restrictions on transactions with certain countries, reflecting the complexities of the current energy landscape. As global oil prices fluctuate, the situation remains critical, with potential implications for energy supply and international relations. Read on to discover more about the impact of this waiver and the broader context of the ongoing energy crisis.

By Narendra Chaudhary Apr 18, 2026, 11:45 IST

Washington's New License for Russian Oil

Washington: The U.S. Department of the Treasury has announced an extension of a waiver that allows the sale and delivery of Russian oil that is already loaded onto ships, with the new deadline set for May 16, as detailed in a document published on its official site.

This extension follows the expiration of a previous 30-day waiver on April 11.

The renewed authorization, issued on Friday (local time), is part of the administration's strategy to stabilize soaring global energy prices, which have escalated due to the ongoing conflict between the U.S. and Israel with Iran.

This decision comes as various nations grapple with the repercussions of increasing energy prices and supply chain disruptions.

According to the official announcement, "(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 authorized through 12:01 a.m. eastern daylight time, May 16, 2026."

However, the waiver maintains stringent restrictions on transactions involving specific countries.

"(b) This general license does not authorize: (1) Any transaction involving a person located in or organized 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 further stated.

This announcement follows comments from U.S. Treasury Secretary Scott Bessent, who indicated that Washington does not plan to extend such waivers indefinitely amid escalating 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 remarked during a media briefing on Wednesday.

In the meantime, global oil prices experienced a significant drop of approximately 9 percent on Friday, settling around $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a crucial global energy transit route.

Nevertheless, the ongoing conflict has already led to what the International Energy Agency has termed the worst disruption to global energy supplies in history.

The war, now in its eighth week, has reportedly caused damage to over 80 oil and gas facilities across West Asia.

Additionally, Tehran has warned that it may close the Strait of Hormuz again if the U.S. Navy persists in its blockade of Iranian ports.

In response to the waiver's extension, Russian presidential envoy Kirill Dmitriev stated on social media, "U.S.-Russian economic and energy cooperation will continue."

He previously noted that the initial waiver on Russian oil could potentially release up to 100 million barrels of crude, roughly equivalent to nearly a day's global oil production.