US extends 30-day waiver for 'vulnerable' nations to access stranded Russian oil

The United States has issued a fresh 30-day general license allowing the world’s most energy-vulnerable nations to access Russian oil cargoes stranded at sea, Treasury Secretary Scott Bessent said on Monday.

In a post on X, Bessent said the United States Department of the Treasury was issuing a temporary license to provide “the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea.”

“This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed,” he said.

Bessent said the general license would “help stabilize the physical crude market and ensure oil reaches the most 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.

The decision comes amid stalled negotiations between the United States and Iran over a possible peace agreement that could have restored normal shipping traffic through the Strait of Hormuz, a critical route for global oil supplies.

In March, the United States had granted Indian refiners and other buyers a 30-day temporary waiver permitting purchases of certain Russian oil cargoes.

At the time, Bessent said the limited waiver was aimed at ensuring continuity of supply and easing pressure caused by “Iran’s attempt to take global energy hostage.”

That waiver expired on April 11, after which the United States said it would not renew temporary authorisations that had allowed buyers to purchase Russian oil cargoes.

Global crude oil prices have surged more than 50 % since US-Israeli strikes on Iran on February 28 and Tehran's subsequent retaliation disrupted energy flows through the Strait of Hormuz.

India imports over 85% of its crude oil needs, making domestic fuel prices highly sensitive to international oil market movements.

Petrol and diesel prices in India were hiked by ₹3 per litre each last week, marking the first increase in more than four years, as state-run fuel retailers passed on part of the hit from surging global crude prices triggered by the West Asia conflict.