oilsupply

US Treasury Secretary Scott Bessent announced a 30-day “temporary authorization” late Thursday, allowing countries to purchase Russian oil already in transit. He argued the measure is “narrowly tailored” and provides minimal financial benefit to Moscow, as Russia earns most revenue at the point of extraction rather than at sea.
The decision comes as US fuel prices have risen 65 cents per gallon in the past month, deepening domestic political pressure ahead of November’s midterm elections.
Oil Prices Above $100 Despite Waiver
Global markets showed little immediate relief. Brent crude, the international benchmark, hovered above $100 per barrel, having crossed the threshold earlier this week for the first time since Russia’s 2022 invasion of Ukraine.
The surge is driven largely by the near-shutdown of the Strait of Hormuz, a key global energy artery where roughly 20% of the world’s oil and seaborne gas normally passes. The ongoing conflict has disrupted traffic, despite US promises to escort vessels.
Iranian authorities have vowed not to allow “one litre of oil” to leave the region while US and Israeli strikes continue. US officials say Iran has even begun laying mines in the strait, according to reporting from the The New York Times.
India Granted Similar Waiver Earlier
The move follows last week’s US decision permitting Indian refiners to buy Russian oil for 30 days — despite earlier claims by President Donald Trump that India had agreed to halt such purchases to “help end the war in Ukraine.”
Approximately 124 million barrels of Russian-origin oil are currently stranded at sea.
Mixed International Reactions
Moscow said the US action shows Washington recognizes that global energy markets cannot stabilize without Russian supply. But European allies disagreed. French President Emmanuel Macron said the crisis in the Strait of Hormuz “in no way” justifies relaxing sanctions.
Meanwhile, the International Energy Agency has ordered the largest strategic oil release in its history, with member states agreeing to deploy 400 million barrels of emergency reserves.
Iran Warns of $200 Oil
As the conflict widens, Iran has intensified strikes on economic targets across the Middle East and warned the US to “get ready for oil to be $200 a barrel.”
President Trump, seeking to calm market fears, posted Thursday that the US benefits from high oil prices as the world’s largest producer — but insisted the priority is preventing Iran from obtaining nuclear weapons.$BNB
#USIsraelWarOnIran #OilPrice #StraitOfHormuz #OilSupply #Tehran $USDC