The United States is expected to extend a waiver permitting certain transactions involving Russian oil despite sanctions, as escalating tensions in the Middle East drive up global energy prices, according to sources cited by Reuters. The move aims to prevent further market instability amid fears of supply disruptions following recent hostilities between Israel and Iran.
Washington first issued the waiver in late 2022, allowing limited transactions with Russian energy producers to avoid a severe supply shock after Moscow’s invasion of Ukraine. Analysts suggest that renewing the exemption could help mitigate price surges caused by recent geopolitical volatility. “The administration is walking a tightrope between maintaining pressure on Russia and preventing economic fallout from energy shortages,” said an industry analyst familiar with U.S. policy discussions.
Oil prices have climbed nearly 15% since early April, with Brent crude briefly surpassing $90 per barrel after Iran launched missile strikes against Israel. The U.S. Treasury Department has not publicly confirmed the waiver extension, but two officials speaking anonymously indicated a decision is imminent. Market watchers warn that failure to renew the exemption could exacerbate inflationary pressures ahead of the U.S. presidential election.
Energy experts note the waiver primarily benefits European allies still reliant on Russian crude processed at third-country refineries. However, some congressional Republicans have criticized the potential extension as undermining sanctions. The administration faces growing calls to balance energy security concerns with maintaining economic pressure on Moscow.