By Ginika Igboke
Treasury Secretary Scott Bessent announced on May 18 a new 30-day sanctions waiver allowing continued purchases of Russian seaborne oil to support countries facing energy shortages amid disruptions linked to the conflict involving Iran.
In a post on X, Bessent said the extension was intended to provide flexibility for nations facing energy risks.
“This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed,” he wrote.
Bessent added that the temporary measure would help stabilize crude markets and direct supply toward countries most vulnerable to energy disruptions.
He also argued the move could reduce China’s ability to accumulate discounted oil supplies while redirecting shipments to countries with greater immediate needs.
Reversal Follows Earlier Comments
The decision represented a shift from Bessent’s earlier position.
In April, he suggested that no additional waiver extension was expected, saying he did not anticipate another renewal and believed most Russian oil cargoes already in transit had largely been absorbed by the market.
The latest move marks the second time the Treasury Department has allowed a waiver to expire before later reinstating it since hostilities involving Iran intensified earlier this year.
The previous waiver expired on May 16 and covered purchases of Russian oil and petroleum products loaded onto ships between April 15 and May 16. That measure had replaced an earlier 30-day exemption that ended in April.
Democratic Senators Criticize Move
The extension drew criticism from Democratic lawmakers, including Jeanne Shaheen and Elizabeth Warren.
The senators described the waiver as an “indefensible gift” to Russian President Vladimir Putin.
In a joint statement, they argued that continued energy revenue helps fund Russia’s war efforts in Ukraine.
“Every additional dollar the Kremlin earns from this license helps Putin finance his illegal war against Ukraine,” they said.
The senators also questioned whether the policy had successfully lowered fuel costs or stabilized energy markets.
Gas Prices and Global Energy Pressures Continue
According to data from the American Automobile Association (AAA), the U.S. national average gasoline price rose from $3.18 per gallon in May 2025 to $4.51 one year later.
Earlier this year, average prices had been below $3 per gallon.
Shaheen and Warren argued that concerns for energy-vulnerable countries would carry more weight had the administration not entered the conflict or pursued different measures to limit energy costs.
Strait of Hormuz Disruptions Add Pressure
The waiver comes as energy markets remain under strain because of disruptions involving the Strait of Hormuz, one of the world’s most important shipping corridors for oil.
Before the conflict involving Iran intensified, roughly 20 million barrels of crude oil and petroleum products moved through the waterway each day.
The situation has complicated Washington’s broader strategy of maintaining pressure on Russia while balancing relationships with key partners.
India significantly increased purchases of Russian oil after Western sanctions were imposed following Russia’s 2022 invasion of Ukraine.
India’s annual crude imports from Russia reportedly expanded from roughly $2 billion before the war to nearly $53 billion by 2024.
The administration has also urged other countries to reduce purchases of Russian oil.
President Donald Trump previously stated that China should also reduce imports of Russian oil and recently encouraged Chinese officials to support efforts to keep the Strait of Hormuz open.
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