US Expands Russian Oil Waiver to Combat Fuel Price Spike

Key Details The White House has issued a second authorization allowing countries to purchase Russian crude oil stranded on tankers due to sanctions. This temporary waiver expands on an earlier authorization given to India, though it only applies to oil already in transit and won't significantly benefit the Russian government, according to Treasury Secretary Scott Bessent. Why It Matters Brent crude has surged roughly 40% since regional conflict began, pushing fuel costs higher globally including at U.S. pumps. The effective closure of the Strait of Hormuz - responsible for moving one-fifth of the world's oil - has created historic supply disruption. The International Energy Agency estimates Middle East producers will cut output by 250 million barrels this month alone. Limited Impact Experts caution this measure provides modest relief at best. India quickly absorbed 30 million barrels under the first waiver, leaving fewer cargoes available now. Analysts estimate the additional supply will only replace four to five days of lost Gulf exports. About 125-150 million barrels of Russian crude remain on water, with roughly one-third heading toward Chinese storage and 30-40 million barrels destined for India. Government Response Beyond the oil waiver, the U.S. is releasing 172 million barrels from its emergency strategic reserve and exploring additional interventions including futures market participation to stabilize energy markets.