The U.S. Treasury on Thursday evening issued a time-limited license permitting foreign buyers to take delivery of Russian oil and petroleum products that were already loaded and afloat prior to March 12. The Office of Foreign Assets Control said the authorization will remain in effect until April 11.
Officials framed the license as a measure to ease pressure on global energy markets shaken by the recent escalation in hostilities tied to the U.S.-Israel conflict with Iran. Treasury Secretary Scott Bessent said the action was designed to promote "stability in global energy markets" and to "keep prices low as we address the threat and instability posed by the terrorist Iranian regime."
The announcement follows earlier easing this week of certain restrictions on Russian oil shipments, including measures affecting major importers such as India. U.S. policymakers have said those changes were intended to help blunt the impact of the Iran conflict on supplies.
Tensions in the Persian Gulf have included a string of tanker attacks and interruptions at ports in the region. Central to the disruptions has been the Strait of Hormuz - a chokepoint responsible for roughly 20% of the worlds oil consumption - where Iran has been reported attacking international vessels. Irans new Supreme Leader Mojtaba Khamenei also stated on Thursday that Tehran would keep the strait closed as leverage against the U.S. and Israel.
The security developments sent oil prices higher, with Brent crude surpassing $100 per barrel for the second time this week. Prices eased after the Treasury issued the OFAC license, reflecting a market response to the temporary allowance for purchases of Russian cargoes already at sea.
Summary
- The Treasury issued a 30-day OFAC license allowing purchases of Russian oil and petroleum products loaded onto vessels before March 12; the license expires April 11.
- Treasury Secretary Scott Bessent said the move was intended to promote "stability in global energy markets" and to "keep prices low as we address the threat and instability posed by the terrorist Iranian regime."
- Recent tanker attacks, port disruptions, and threats around the Strait of Hormuz lifted Brent above $100/barrel before prices fell after the license was announced.
Market context
The temporary license is presented as a short-term step to reduce immediate price pressure caused by security risks in a key shipping region. By allowing already-loaded Russian cargoes to change hands, the policy aims to increase available supply in the near term without altering broader sanctions policy beyond the specified dates and conditions.