US extends Russian oil waiver

A reprieve that was to run only until May 16 has reportedly been prolonged to cool soaring energy prices

The US has once again extended a sanctions waiver that allows Russian crude and petroleum products already loaded onto tankers to be delivered and sold, Reuters has reported, citing a source familiar with the decision.

The latest exemption by the US Treasury Department, which had lapsed on Saturday, follows an earlier 30‑day relaxation that expired on April 11, and gives buyers another 30 days to complete shipments of Russian seaborne oil without breaching US restrictions, the source told the outlet on Monday. The move reportedly came after several countries requested more time to take delivery of cargoes.

Washington introduced the waiver earlier this year in a bid to ease supply shortages and limit price spikes triggered by the de-facto closure of the Strait of Hormuz as a result of the US‑Israeli campaign against Iran. The key waterway handles around 20% of global seaborne crude exports, and its disruption has rattled energy markets.

However, the measure has so far done little to calm US gasoline prices, which remain elevated despite efforts by the Treasury and other agencies to prevent a deeper shock, Reuters wrote.

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Treasury Secretary Scott Bessent has previously defended the decision to extend sanctions relief, telling US lawmakers in April the waiver had allowed Treasury to put “more than 250 million barrels on the water” and ease fears over supply.