US issues temporary license to purchase Russian crude

The US Department of the Treasury (DoT) has issued a temporary license allowing some countries to resume purchases of Russian crude oil amid the ongoing US-Israel conflict with Iran.

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The move follows a similar 30-day waiver permitting India to continue purchasing Russian crude amid reduced shipment through the Strait of Hormuz.

The measure is unlikely to deliver meaningful financial gains to the Russian government, as it only allows transactions involving oil already stranded at sea, US treasury secretary Scott Bessent said in statement posted on social media platform X.

“This narrowly tailored, short-term measure applies only to oil already in transit,” Bessent said.

The International Energy Agency (IEA) and its 32 member countries on Thursday agreed to release 400 million bbls from strategic reserves as the conflict in the Middle East continues to disrupt oil flows from the region.

The US waiver allowing the sale of Russian crude came shortly after the Department of Energy said it would release 172 million bbls from the Strategic Petroleum Reserve (SPR) as part of the broader IEA-led effort to curb the surge in oil prices.

By Aparupa Mazumder

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