U.S. Extends Russian Oil Sanctions Waiver After Brief Lapse

The U.S. Treasury Department reversed course and extended a sanctions waiver on Russian seaborne oil for 30 days through June 17, 2026, just days after allowing the same waiver to lapse on May 16. Treasury Secretary Scott Bessent announced the extension, stating it would stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries. The waiver applies only to Russian oil already loaded onto tankers as of April 17, not newly pumped crude.

The original waiver was introduced in March and renewed in April to mitigate supply disruptions caused by the closure of the Strait of Hormuz following U.S. and Israeli military actions against Iran in February. The International Energy Agency called the disruption the biggest in oil market history, with roughly 20% of global supply affected and Brent crude prices exceeding $112 per barrel.

The extension drew sharp criticism. Ukrainian President Volodymyr Zelensky condemned the measure, stating that every dollar paid for Russian oil funds the war. Democratic Senators Jeanne Shaheen and Elizabeth Warren argued the waiver provides critical revenue to Moscow. EU Economy Commissioner Valdis Dombrovskis, speaking at a G7 finance ministers meeting in Paris, asserted that Russia is profiting from the Iran conflict and that pressure on Moscow should increase, not decrease. The Council on Foreign Relations estimated the waiver has generated Russia an additional $150 million per day in oil revenue.

India, which increased Russian crude imports to a record 2.3 million barrels per day under the waiver, and Indonesia had lobbied for extensions. Bessent said more than 10 energy-vulnerable countries sought the extension. Meanwhile, President Donald Trump discussed lifting sanctions on Chinese firms purchasing Iranian oil following talks with President Xi Jinping in Beijing.