As the Strait of Hormuz has been effectively shut down after U.S. and Israeli airstrikes on Iran and global oil prices surge, the U.S. government said it will temporarily allow the sale of Russian crude and petroleum products that are under sanctions. After topping $100 and easing, international oil prices again surpassed $100 after Mojtaba Khamenei, Iran's new supreme leader, signaled his intent to block the Strait of Hormuz.
On the 12th (local time), the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) issued a new general license authorizing sales through Apr. 11 for Russian crude and petroleum products that were loaded before 12:01 a.m. that day. The move responds to the surge in oil prices caused by the Iran war, partially easing the economic sanctions imposed on Russia for its invasion of Ukraine. With Iran's closure of the Strait of Hormuz and attacks on energy infrastructure across the Middle East, international oil prices have topped $100 per Barrel.
Scott Bessent, the U.S. Treasury Minister, said on X (formerly Twitter), "To broaden the global reach of existing supply, the Treasury is providing temporary authorization for countries to purchase Russian oil currently stuck at sea," adding, "This short-term measure applies only to oil already in transit and will not provide meaningful financial benefits to the Russian government." He also said, "President Donald Trump is taking decisive action to promote stability in global energy markets and keep prices low as we confront the threats and instability caused by the terrorist Iranian regime."
The closure of the Strait of Hormuz is causing mounting damage, but U.S. Navy escorts are expected to take time. U.S. Energy Minister Chris Wright said in a broadcast interview, "The U.S. Navy is not yet ready to escort tankers transiting the Strait of Hormuz."