The United States will extend a sanctions waiver allowing temporary access to Russian seaborne oil for another 30 days, Reuters reported on Monday, May 18, citing a source familiar with the decision.
The waiver had expired on Saturday and was extended after several countries requested additional time to purchase Russian oil amid disruptions linked to the war involving Iran and the closure of the Strait of Hormuz.
According to Reuters, the exemption is intended to help “poor and vulnerable countries” facing supply shortages after access to Gulf oil supplies was disrupted.
The source did not identify the countries that requested the extension.
US Treasury confirms temporary extension
Later Monday, US Treasury Secretary Scott Bessent confirmed the move in a post on X.
“The US Treasury is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea,” Bessent wrote.
He said the extension would provide “additional flexibility” while Washington works with affected countries on specific licenses if needed.
According to Bessent, the measure is also aimed at stabilizing global crude markets and ensuring oil supplies reach energy-vulnerable countries.
“It will also help reroute existing supply to countries most in need by reducing China’s ability to stockpile discounted oil,” he added.
Waiver introduced after Iran conflict disrupted markets
Reuters reported that the sanctions waiver was first introduced in March following US-Israeli strikes on Iran, which triggered oil supply disruptions and sharp price increases.
The waiver allowed sanctioned Russian oil and petroleum products stranded at sea to enter global markets.
The measure reportedly benefited countries such as India, which had been among the largest buyers of Russian oil before Washington tightened sanctions against Russia over its war against Ukraine.
Despite the extension, oil prices continued rising Monday, with Brent crude futures climbing around 1.5% to approximately $111 per barrel, according to Reuters.
Bessent also urged G7 countries and other allies to strengthen enforcement of sanctions against Iran.
On May 17, Bloomberg reported that the Trump administration has officially terminated its short-lived, highly controversial sanctions-waiver program for Russian oil, reverting to a policy of maximum economic pressure as global energy vectors shift.
According to the report, the White House decided against extending the emergency temporary exemptions, bringing a definitive end to a brief policy window that had allowed certain tranches of Russian crude back onto Western-regulated global maritime markets.
Treasury officials confirmed the exemptions are no longer necessary because the specific Russian oil volumes previously stuck at sea have been “largely sucked up” and fully integrated into global inventories, making further updates redundant.
The US Treasury Department initially rolled out the specialized exemptions in March, subsequently approving a second 30-day extension via General License 134B in April.
The waivers were narrowly tailored, applying exclusively to Russian crude that had already been loaded onto commercial tankers as of April 17, with an absolute operational ceiling running through May 16.
The White House originally designed the measures as a shock absorber for global energy security, aiming to cool down international energy indexes after Brent crude surged past the $100-a-barrel threshold following the outbreak of the US-Israeli war with Iran on Feb. 28.
Ukraine’s leadership had been particularly unsparing in its assessment of the Treasury’s concessions. Ukrainian Ambassador to the US Olha Stefanishyna and Foreign Minister Andrii Sybiha lodged formal protests, while President Volodymyr Zelensky publically warned that the loophole directly supported the Kremlin’s military spending.
Zelensky noted that during the brief waiver window, over 110 tankers operating within Russia’s maritime “shadow fleet” – carrying oil valued at an estimated $10 billion – were cleared to transact without legal or financial consequences, immediately converting those energy profits into fresh drone and missile production lines targeting Ukrainian cities.