Temporary US authorisation aims to stabilise energy markets as Middle East tensions push crude prices close to $100 per barrel and raise fears of supply disruptions.
The United States has temporarily allowed countries to purchase Russian oil currently stranded at sea in a move aimed at easing pressure on global energy markets amid escalating tensions in West Asia.
The decision comes as geopolitical instability in the Middle East has disrupted key supply routes and triggered sharp volatility in oil prices, raising concerns about a potential supply crunch in global markets.
US Treasury Secretary Scott Bessent said the temporary authorisation is part of the Donald Trump administration’s efforts to stabilise global energy markets and contain rising fuel prices as tensions in the region threaten oil flows.
In a post on social media, Bessent said the US Department of the Treasury has issued a limited authorisation allowing countries to purchase Russian oil shipments that are already in transit and currently stranded at sea due to sanctions, shipping disruptions, and market uncertainty.
“@POTUS is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime,” Bessent said.
The move effectively allows certain buyers to complete transactions involving Russian crude that had already been loaded onto tankers but could not be delivered due to tightening sanctions and logistical bottlenecks.
Analysts say the decision could help ease short-term supply tightness in global markets, particularly at a time when the Middle East crisis has raised fears of disruptions along key oil transit routes.
The Strait of Hormuz — one of the world’s most critical maritime chokepoints — has been at the centre of market concerns. Nearly a fifth of global oil supplies typically pass through the narrow waterway linking the Persian Gulf with the Arabian Sea.
Any disruption to shipping through the Strait could significantly tighten global oil supply and push prices higher.
Benchmark Brent crude prices recently surged toward $120 per barrel, marking a multi-year high amid concerns that escalating tensions in the region could threaten oil supplies.
Although prices have cooled slightly from those levels, crude is currently trading around $100 per barrel — roughly 35 per cent higher than levels seen before the latest geopolitical crisis erupted.
Energy markets have remained highly volatile as traders assess the potential impact of the conflict on global supply chains, particularly given the Middle East’s central role in the world’s energy system.
The region accounts for a significant share of global oil exports, and any disruption to its shipping routes can have an immediate impact on global fuel prices and inflation.
Bessent also highlighted that the Trump administration’s pro-energy policies have helped boost domestic oil and gas production in the United States, pushing output to record levels.
According to the US Treasury Secretary, strong domestic energy production has played an important role in supporting global supply and helping moderate fuel prices for consumers.
He described the recent surge in oil prices as a temporary shock driven by geopolitical tensions, adding that the administration believes its broader energy policies will deliver long-term economic benefits.
“The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long term,” Bessent said.
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