The conflict in the Middle East benefits Russia, despite the invasion of Ukraine. On Friday, the US Treasury Department temporarily extended the suspension of most sanctions against the Russian oil industry until May 16. This decision comes as the temporary resumption of traffic through the Strait of Hormuz has led to a significant drop in oil prices.
The decision, effective immediately, applies to all operations related to the loading and delivery of oil from Russia, including vessels in the Russian “ghost fleet” previously under sanctions. The only exception is transactions with Iran, North Korea, Cuba, and the occupied Ukrainian regions, including Crimea, which remain prohibited.
Moderating Price Surges The US government had previously lifted sanctions on Russian oil stored at sea to help curb rising oil prices. However, Treasury Secretary Scott Bessent stated on Wednesday that this suspension would not be extended beyond the initial period.
“We will not renew the license for Russian oil,” he said at a press conference. The US government is imposing sanctions on Russia and Iran’s oil resources to cut off revenue to the authorities in these countries. This is to punish Moscow for the invasion of Ukraine and Iran for continuing its nuclear program and funding armed groups like Lebanese Hezbollah.
In March, Washington granted a temporary waiver for the sale of oil from these countries to help moderate the surge in prices due to the conflict in the Middle East.
