Bessent grants a 30-day extension for Russian oil in tankers as Iran war squeezes supply

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WASHINGTON (AP) — Treasury Secretary Scott Bessent said Monday that the U.S. will give a 30-day extension for countries to import Russian oil that is already in tankers at sea, a move that is meant to reduce the oil supply shortages caused by the Iran war.

The announcement marks a continued policy reversal by an administration that had previously said the sanctions on Russian oil would resume. Originally announced in early March, the temporary waiver on the sanctions was first renewed in April, just two days after Bessent said at the White House that he had no plans to extend the sanctions relief.

The latest extension for another 30 days comes after Bessent told The Associated Press that the waiver on Russian oil sanctions would lapse, a sign of the lasting global economic challenges created by the Iran war as shortages are pushing up prices that are hampering growth.

Bessent said the extension would help poorer nations in need of oil because China would no longer have the same ability to “stockpile discounted oil” from Russia. But there are risks as the temporary lifting of sanctions would help Russia finance its war in Ukraine.

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