The U.S. Treasury Department announced on Thursday (March 12) the issuance of a 30-day special license authorizing countries to purchase Russian crude oil and petroleum products currently stranded at sea. This move is seen as an emergency transitional measure to address the turmoil in global energy markets caused by the conflict with Iran, aiming to prevent a further widening of the supply gap and a runaway surge in oil prices.

U.S. Treasury Secretary Scott Bessant emphasized that the license is a short-term, targeted exemption that will not bring significant economic benefits to the Russian government.

This move partially eased market concerns about supply disruptions. On Friday in Asian trading, US crude oil prices fluctuated lower and are currently trading around $94.85 per barrel, down about 0.9% on the day.

Scope of authorization, validity period and specific terms of the license

The license text shows:

Authorized to: Buyers worldwide (including those from previously restricted countries);

Authorized cargo: Russian crude oil and petroleum products currently loaded on board;

Effective date: March 12, 2026;

Valid until midnight on April 11, 2026 (Eastern Time) (30 days in total).

This permit applies only to tankers "detained at sea" and does not apply to newly loaded or future exported Russian oil; it is a clearly temporary exemption.

Bessen: Short-term measures to stabilize global energy markets will not benefit the Russian government.

In a statement, Bessant said the move was intended to "stabilize global energy markets destabilized by the conflict with Iran." He emphasized that the licenses only address the current issue of stockpiled cargoes at sea; they will not generate significant additional revenue for the Russian government (as the cargoes have already been pre-sold or locked in); the core framework of US energy sanctions against Russia remains unchanged, and this is a "limited, temporary" adjustment.

This statement is intended to respond to criticism from both domestic and international sources regarding the "easing of sanctions against Russia," while also alleviating oil price panic and inflationary pressures caused by the interruption of the Hormuz trade agreement.

The conflict in Iran disrupted the Hormuz trade zone, straining global energy supplies.

Since the US and Israel launched a large-scale airstrike against Iran on February 28, Iran has retaliated by blocking the Strait of Hormuz, disrupting the sea transport of approximately 20% of the world's oil and a large amount of LNG.

With Gulf oil-producing countries facing saturated storage capacity and forced to cut production, oil prices are fluctuating at high levels, the risk of supply disruptions persists, and the global energy market is highly tense. Asian importers are facing the greatest impact.

A 30-day exemption had previously been granted to India.

The U.S. Treasury Department had previously granted India a 30-day waiver on March 5, allowing New Delhi to purchase Russian oil stranded at sea to fill the supply gap in the Middle East.

As one of Russia's largest buyers of crude oil, India had previously significantly reduced its purchases due to sanctions. This exemption has helped it quickly resume its purchases. This global 30-day license can be seen as an "expanded version" of the special exemption granted by India, covering more countries and buyers.

Analysis of short-term stabilizing effects and long-term impacts

In the short term: the license can quickly absorb the Russian oil inventory stuck at sea, alleviate some of the supply panic, stabilize the procurement channels for Asian buyers, and prevent oil prices from spiraling out of control further.

In the long term: the US energy sanctions framework against Russia remains unchanged, and this is a temporary transitional measure; if the Hormuz trade dispute continues to be interrupted, the global energy deficit will be difficult to fundamentally fill, and the risk of oil prices fluctuating at high levels remains high.

Market focus: Whether Iran will retaliate with escalated attacks, the actual implementation effect of G7/IEA reserve releases, and the timetable for the resumption of air traffic around the Hormuz. Asian importing countries will benefit in the short term, but in the long term, they need to be wary of the uncertainty of sanctions and the pressure of energy diversification.



(US crude oil daily chart, source: FX678)

Editor's Summary

The U.S. Treasury Department has issued a 30-day license to purchase Russian oil at sea, authorizing global buyers to purchase Russian crude oil and petroleum products currently stranded on ships, valid until midnight on April 11. This move aims to stabilize the global energy market turmoil caused by the conflict with Iran. Treasury Secretary Bessenter emphasized that this short-term measure will not bring significant economic benefits to the Russian government. A similar exemption had previously been granted to India on March 5; this global license can be seen as an expanded version.

With the Strait of Hormuz disruptions continuing, blocking 20% of global oil supply, and oil prices fluctuating at high levels, this permit provides a temporary buffer for Asian buyers, but it cannot fundamentally solve the supply gap. In the long term, the US sanctions framework against Russia remains unchanged, and investors need to pay attention to Iran's response, the resumption of navigation in the Strait, and the progress of G7/IEA reserve releases. Uncertainty remains regarding oil prices and inflation risks.

At 9:23 AM Beijing time, US crude oil futures were trading at $94.84 per barrel.