US Renews Russian Oil Waiver for a Month as Brent Crude Slip Lower

The United States has renewed a sanctions waiver that allows countries to buy certain Russian oil cargoes already loaded on vessels for another month. The move came after Treasury Secretary Scott Bessent said earlier in the week that Washington did not plan to extend the relief. Treasurys new license allows covered transactions through May 16.

Meanwhile, Brent crude prices moved lower after Iran said commercial passage through the Strait of Hormuz would remain open during the ceasefire period.

US Treasury Reverses Course on Russian Oil Waiver

The Treasury Department renewed the waiver on April 17 through General License 134B. The license authorizes transactions tied to the sale, delivery, or offloading of and petroleum products loaded on vessels on or before 12:01 a.m. Eastern Daylight Time on April 17. It stays in effect through 12:01 a.m. EDT on May 16.

However, the license does not authorize transactions involving Iran, Cuba, North Korea, the covered regions of Ukraine, or the Crimea region. It also replaced and superseded General License 134A, which had been issued in March and expired on April 11.

The extension marked a clear change in position from comments made days earlier. On April 15, Bessent said the United States would not renew the waivers for Russian and Iranian oil, arguing that the earlier waivers had already served their purpose in easing supply strain. The administration changed course as it sought to keep oil available for countries facing supply pressure during the Iran conflict.

Asia pushed Washington to keep alternative barrels flowing into the market as the war-driven supply shock tightened conditions.

Brent Crude Prices Fall as Hormuz Fears Ease

Meanwhile, oil prices moved sharply lower on Friday after Iran said commercial vessels could pass through the Strait of Hormuz during the ceasefire period. Brent crude futures settled down $9.01, or 9.07%, at $90.38 a barrel, after falling as low as $86.09 during the session. U.S. West Texas Intermediate settled down $10.48, or 11.45%, at $83.85.

Brent Crude Oil | Source | Trading Economics

The drop followed weeks of price pressure linked to the risk of supply disruption in the Gulf. Both Brent and WTI posted their largest daily declines since April 8 after the market began to unwind some of the risk premium built around the Strait of Hormuz.

Around one-fifth of global oil and liquefied natural gas trade normally passes through that route, making shipping conditions there a direct driver of energy prices.

Markets still treated the reopening claim with caution. A U.S. military remained in effect, while ship tracking data showed only limited movement through the waterway.

By extending the Russian oil waiver, Washington gave buyers a legal path to complete deliveries of Russian cargoes already at sea.

Political Pressure and Market Fallout

The decision drew criticism from lawmakers who argued that sanction relief could help sustain Russian oil revenue during the war in Ukraine. European Commission President Ursula von der Leyen said this was not the moment to relax . The renewed waiver could therefore add strain to Washingtons coordination with some allies even as it aims to steady the oil market.

Russian President Vladimir Putins envoy Kirill Dmitriev claimed the extension would affect another 100 million barrels of Russian oil, bringing the total volume covered by both waivers to 200 million barrels.