Commodities May 18, 2026 12:44 PM

U.S. Treasury Extends Temporary Waiver for Russian Seaborne Oil by 30 Days

Short-term renewal follows requests from buyers cut off from Gulf supplies amid Iran-related disruptions

By Sofia Navarro

The U.S. Treasury has renewed a temporary waiver allowing imports of sanctioned Russian seaborne oil for an additional 30 days after the waiver lapsed. The extension follows requests from several unidentified countries that face disruptions to Gulf oil supplies linked to the Iran war and the closure of the Strait of Hormuz. Brent crude climbed on supply concerns despite the extension.

U.S. Treasury Extends Temporary Waiver for Russian Seaborne Oil by 30 Days

Key Points

  • The U.S. Treasury extended a sanctions waiver on Russian seaborne oil for 30 days after it lapsed on Saturday.
  • Several unnamed countries requested extra time to buy Russian oil after being cut off from Gulf supplies due to the Iran war and the closure of the Strait of Hormuz; the source declined to identify them.
  • Brent crude futures rose about 1.5% to around $111 a barrel as supply worries outweighed the waiver extension; U.S. officials discussed stronger enforcement of Iran sanctions at a G7 finance meeting.

The U.S. Treasury will prolong its sanctions waiver on Russian seaborne oil for another 30 days after the measure lapsed on Saturday, according to a report published on Monday. The renewal follows appeals from multiple countries seeking more time to obtain Russian oil after disruptions to Gulf supplies.

A source who provided details to the report declined to name the countries that requested the additional time. The requests were made after those buyers were cut off from supplies originating in the Gulf region as a result of the Iran war and the closure of the Strait of Hormuz, the source said.

This is the second occasion on which the Treasury allowed the waiver to lapse prior to extending it. The waiver was originally put in place in March to help address shortages of oil and to temper price increases. It did so by permitting the release of sanctioned Russian oil and petroleum products that were being held in tankers.

Observers note that the waiver provided support to India, which had been among the largest purchasers of Russian oil prior to the imposition of U.S. sanctions on Russian oil companies aimed at pressuring Moscow over the war in Ukraine.

In market moves on Monday, Brent crude futures rose about 1.5% to roughly $111 a barrel, as lingering supply concerns outweighed the effect of the Russian waiver extension. In addition, an Iranian news agency reported that the U.S. was considering a temporary lifting of sanctions on Iranian oil as part of peace negotiation discussions.

U.S. Treasury Secretary Scott Bessent, who was attending a Group of Seven finance leaders meeting in Paris, said he wanted G7 members and other allies to more strongly enforce sanctions on Iran.


Context limitations - The report did not identify the countries that sought the extension, and provided no further operational details on how the extended waiver will be administered.

Risks

  • Continued disruptions to Gulf oil supplies linked to the Iran war and the closure of the Strait of Hormuz could sustain price volatility in global oil markets - impacting energy and trading sectors.
  • Uncertainty over which buyers will rely on the waiver and how long temporary measures remain in place creates execution risk for oil traders and refiners.
  • Differing approaches to sanction enforcement among allies, including calls for stronger Iran sanctions, may add geopolitical and regulatory uncertainty for markets and shipping operators.

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