A temporary US sanctions waiver that allowed the sale and delivery of Russian seaborne crude oil expired on Wednesday for the third time. The move follows comments by US President Donald Trump indicating that his administration is unlikely to extend the measure.
Speaking at the G7 summit in France on Tuesday, Trump said the United States would soon be able to restore sanctions on Russian crude because oil shipments were flowing again through the Strait of Hormuz.
Trump explained that the administration had temporarily eased sanctions to avoid disrupting global oil supplies during a period of severe market instability. However, he said the White House now believes conditions have improved enough to allow the waiver to lapse.
The emergency 30-day general license was first introduced in March after Iran effectively blocked the Strait of Hormuz following US-Israeli military strikes. The disruption caused global oil prices to surge because nearly one-fifth of the world’s oil and gas supplies normally pass through the strategic waterway.
To reduce pressure on international energy markets, Washington permitted the transit of Russian crude oil and petroleum products that were already at sea. The waiver was later extended in April and May before expiring on Wednesday.
Meanwhile, the temporary measure drew mixed reactions from US allies and trading partners. Several European countries criticized the waiver, arguing that it provided Russia with additional oil revenue during its ongoing war in Ukraine. In contrast, several Asian economies urged Washington to maintain the exemption to help ease domestic fuel shortages.
At the same time, expectations surrounding a potential US-Iran agreement and the reopening of shipping through the Strait of Hormuz have eased concerns over global energy supplies. Consequently, international oil prices have fallen significantly.
Russia’s benchmark Urals crude, which climbed to around $120 per barrel during the peak of the regional conflict, has now dropped below $65 per barrel. The decline reflects improving market confidence and a more stable outlook for global energy supplies.
