The US has let the sanctions waiver allowed on Russian oil purchases by it expire on Saturday, despite a surge in oil prices amid the Middle East conflict.
The US issued an order allowing the delivery and sale of crude oil and petroleum products originating from Russia was on April 17. The order permitted sale of oil boarded on cargo vessels as on April 17.
As the exemptions are set to expire midnight on Saturday, no amended orders extending the waiver has appeared on the website of the US Treasury, Bloomberg reported.
The previous waiver was described by US Treasury Secretary Scott Bessent as a measure to stabilize energy markets in the aftermath of the Gulf war.
The US-Israeli war on Iran had led to the closure of the Strait of Hormuz, a chokepoint controlled by Iran that carried roughly one-fifth of the world’s daily oil supply. Iran has blocked that transit of ships from what it terms as non-friendly nations, a step which send oil prices surging nearly 50% to almost $120 per barrel.
The Trump administration’s first waiver was in March, which was extended in April following the expiration of the earlier waiver.
The US sanctions waiver had irked European allies of the US. They had charged that the move was funding Russia’s war on Ukraine through the funds received from its oil sales.
Many countries including India, which had emerged as a major buyer of Russian oil, and Indonesia had lobbied with the US for a waiver, arguing that the supply disruptions caused by the Hormuz blockade had deprived a huge chunk of supplies to the global oil market, thereby effecting a huge surge in prices.
Bessent had said that “more than 10 of the most vulnerable and poorest countries” in terms of energy consumption had sought a waiver from him.
The US had imposed a 25 per cent fine on India for its Russian oil purchases in August 2025, but ended it after it announced a trade deal with the South Asian country. Bloomberg reported that the US had repeatedly urged India to reduce discounted purchases as part of efforts to mount pressure on Moscow over the war in Ukraine.
The International Energy Agency has termed the Iran war as the biggest supply disruption in the history of the oil market.
On Friday, President Donald Trump said China has agreed to buy US oil, as a substantial amount of Iran’s shipments continue to be blocked by Washington’s naval blockade of the Strait of Hormuz.
Many US lawmakers had urged the administration to end the sanctions waiver on Russia. Senators Jeanne Shaheen and Elizabeth Warren said the US should “finally end its ill-conceived policy of helping Russia make even more money” from the reckless war in Iran.
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