How a New US Waiver is Set to Impact Global Oil Prices Amid Ongoing Conflicts

US Waiver Opens Up New Oil Supplies

New Delhi: A recent waiver from the United States allowing the purchase of seaborne Russian crude has released approximately 20 million barrels of oil currently aboard ships. This move is anticipated to help stabilize soaring prices that have surpassed $100 per barrel globally, particularly in light of the ongoing conflict in Iran.

At present, around 25 vessels are transporting Russian crude, with an additional five carrying petroleum products. These shipments can be redirected to meet demand in various markets.

This temporary waiver supplements a previous 30-day exemption granted by the Trump administration, which enabled Indian refiners to acquire Russian oil, aiming to increase crude availability and mitigate price hikes.

India and China have emerged as the primary purchasers of Russian crude, playing a crucial role in regulating global oil prices due to their status as major oil importers.

On Thursday, the Trump administration issued a new license permitting countries to temporarily acquire specific Russian oil products.

Treasury Secretary Scott Bessent announced on social media, "To enhance the global supply chain, @USTreasury is offering a temporary authorization for countries to buy Russian oil currently stranded at sea."

He emphasized that this short-term measure is specifically for oil already in transit and will not significantly benefit the Russian government, which primarily earns from taxes at the extraction point.

The license, available on the US Treasury website, applies only to Russian crude or petroleum products loaded onto vessels as of March 12, and it authorizes these shipments until April 11.

This announcement coincides with Iran's new leadership declaring intentions to close the Strait of Hormuz, a critical passage for 20% of the world's oil exports.

The conflict in Iran has now entered its second week, marked by escalating missile strikes and attacks targeting oil infrastructure and commercial vessels in the region.