The United States will temporarily remove sanctions on Russian oil currently stranded at sea, Treasury Secretary Scott Bessent announced late Thursday, marking the latest move by the Trump administration to address rising global energy prices amid escalating tensions with Iran.
Bessent said the Treasury Department’s action is designed to stabilize energy markets while limiting any financial benefit to Moscow. In a post on the social platform X, he described the measure as “narrowly tailored” and emphasized that it “will not provide significant financial benefit to the Russian government.” According to the Treasury Department, the temporary exemptions will remain in place until April 11.
In his statement, Bessent framed the move as part of a broader strategy by the administration to keep fuel costs down during geopolitical instability.
“President Trump is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime,” he wrote.
He added that domestic energy production has helped buffer Americans from volatility in global markets.
“President Trump’s pro-energy policies have driven U.S. oil and gas production to record levels, contributing to lower fuel prices for hardworking Americans,” Bessent wrote. “The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term.”
Part of a Broader Energy Strategy
The decision follows several recent steps taken by the administration to ease pressure on global oil supplies. Nearly a week earlier, the White House lifted other restrictions on Russian oil, allowing India to purchase Russian barrels for 30 days.
On Wednesday, Trump also announced the release of 172 million barrels of oil from the Strategic Petroleum Reserve, the nation’s emergency stockpile intended to cushion supply shocks.
Together, these moves signal an aggressive effort by the administration to stabilize markets as energy prices climb.
Congressional Democrats Seek Answers
The policy shift has already drawn scrutiny on Capitol Hill. A group of Democratic senators on the U.S. Senate Committee on Banking, Housing and Urban Affairs sent a letter earlier this week to the committee’s chair, Tim Scott, requesting answers about the administration’s decisions regarding Russian oil sanctions.
The minority members — including Elizabeth Warren — asked for a congressional hearing with Bessent by the end of March to examine the administration’s actions.
Rising Tensions in the Middle East
The administration’s moves come as energy markets react to escalating military tensions with Iran. Prices have surged since U.S. strikes began against Iranian targets.
Iran occupies a strategic position along the Strait of Hormuz, one of the world’s most critical oil transit routes. Any disruption to shipping through the strait could significantly affect global supply.
A statement attributed Thursday to Mojtaba Khamenei, recently selected as Iran’s supreme leader, asserted that the strait will remain closed — a development that could further intensify market volatility.
What Comes Next
With the sanctions relief set to expire in April, the Treasury Department’s temporary policy may serve as a short-term pressure valve for energy markets. But with geopolitical tensions still unfolding and lawmakers demanding oversight, the administration’s approach to balancing sanctions, supply, and global stability is likely to remain under close scrutiny in the weeks ahead.
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