US considers easing Russian oil restrictions to stabilise global markets amid Middle East conflict

The United States is weighing targeted waivers on Russian crude exports to help alleviate global supply disruptions and curb soaring prices amid escalating Middle East tensions, raising questions over the future of sanctions policy.

The United States is weighing a loosening of restrictions on Russian crude as part of an effort to relieve pressure on global energy markets disrupted by the widening conflict in the Middle East, according to people familiar with internal de...

According to Reuters, options under consideration range from broad delisting of sanctioned cargoes to targeted waivers that would allow specific buyers such as India to import Russian oil without facing U.S. penalties. Administration officials have told outlets such measures are intended to increase the amount of crude available internationally at a time when flows from the Gulf of Hormuz have been disrupted and prices have surged.

Treasury Secretary Scott Bessent has publicly signalled the Treasury is evaluating whether easing curbs on “hundreds of millions of barrels of sanctioned crude on the water” could help stabilise markets, telling media that unsanctioning some shipments would create supply while stressing the moves are aimed at market relief rather than signalling a broader easing of pressure on Moscow. According to The Guardian and other reports, Bessent said the steps would not be designed to provide significant financial gain to the Russian government.

The administration has already taken limited steps. Washington recently authorised a temporary exception to permit Russian cargoes already at sea to be sold to India to offset shortfalls caused by the Middle East escalation. Sources differ on the exact expiry; Reuters reported the authorisation ran through the end of 3 April 2026, while other accounts put the waiver through 4 April. Reuters sources said a further policy announcement could come as soon as Monday, though deliberations were ongoing and no final decision had been taken.

U.S. Energy Secretary Chris Wright, speaking to Fox News, sought to draw a distinction between pragmatic market measures and a strategic shift on sanctions, saying: “We just made a pragmatic decision,” and “I don’t think there’s any change in the pressure there… Russia’s oil remains sanctioned. There’s no change in policy towards Russia.” The Treasury has similarly framed potential waivers as temporary, market-focused interventions.

The proposal exposes an inevitable policy trade-off. Easing constraints on Russian exports could supply additional crude and blunt price spikes that harm consumers and economies worldwide, but Western governments have long used energy restrictions to limit Moscow’s ability to finance its military operations in Ukraine. Kremlin economic adviser Kirill Dmitriev has said discussions with U.S. officials are taking place and argued that sanctions have damaged the world economy, comments reported by TASS and other outlets.

Markets have reacted to the prospect of additional supply as an incremental influence rather than a guaranteed cure for elevated prices. Industry commentators noted that unsanctioning oil already loaded on tankers could bring significant volumes to market quickly, but lasting relief would depend on the scope of any delisting and whether buyers respond by increasing purchases. Prices have spiked sharply since the outbreak of hostilities between the United States, Israel and Iran, with some reports citing weekly gains approaching 30 percent at the peak of the move.

White House messaging has emphasised contingency planning. A White House spokesperson said the administration had been preparing for energy market volatility before the latest escalation and that “President Trump and his entire energy team have had a strong game plan to keep energy markets stable and will continue to review all credible options,” adding that any official policy announcement would come from the president or senior officials.

Any change would test the coherence of Western sanctions policy: officials must weigh short-term market stability against the long-term objective of constraining Russian energy revenues. As discussions continue, officials and market participants will be watching closely for the precise terms of any waiver and for signals about whether Washington intends the measures to be temporary, narrowly targeted relief or a more enduring recalibration of sanctions enforcement.

Source: Noah Wire Services