Finance
US Renews Russian Oil Waiver After Pressure From Countries Dealing With Iran War Price Shocks
Published by Global Banking & Finance Review®
Posted on April 18, 2026
4 min readLast updated: April 18, 2026
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The U.S. Treasury extended a waiver letting countries buy Russian oil already loaded at sea until mid-May to ease global energy pressure caused by the war in Iran and closure of the Strait of Hormuz.
US Renews Russian Oil Waiver Following Pressure Over Iran War Price Shocks
US Treasury's Decision and Global Energy Implications
By Timothy Gardner and Ismail Shakil
WASHINGTON, April 17 (Reuters) - The Trump administration on Friday renewed a waiver allowing countries to buy sanctioned Russian oil at sea for about a month, even as lawmakers accused the government of going easy on Moscow as its war on Ukraine grinds on.
The Treasury Department's waiver lets countries purchase Russian oil and petroleum products loaded on vessels as of Friday through May 16. It replaces a 30-day waiver that expired on April 11 and excludes transactions involving Iran, Cuba and North Korea.
The move is part of the administration's effort to control global energy prices that have shot higher during the U.S.-Israeli war on Iran. It came after countries in Asia, suffering from the global energy shock, pressed Washington to allow alternative supplies to reach markets.
Treasury Department's Policy Shift
REVERSAL BY TREASURY
"As negotiations (with Iran) accelerate, Treasury wants to ensure oil is available to those who need it," a Treasury Department spokesperson said.
Just two days earlier, Treasury Secretary Scott Bessent said Washington would not be renewing the waiver for Russian oil and another for Iranian oil, which is set to expire on Sunday.
Impact on Global Oil Prices
Global oil prices tumbled 9% on Friday to about $90 a barrel after Iran temporarily reopened the Strait of Hormuz, an oil choke point in the Gulf. But the war has already created the worst global energy supply disruption in history, the International Energy Agency has said.
The war, which enters its eighth week on Saturday, has damaged more than 80 oil and gas facilities in the Middle East, and Tehran has warned it could close the strait again if the recent U.S. Navy blockade of Iranian ports continued.
High oil prices are a threat to President Donald Trump's fellow Republicans ahead of November's midterm elections.
International Pressure and US Response
Trump has also faced pressure from partner countries on the oil price. A U.S. source said partner countries on the sidelines of Group of 20, World Bank and International Monetary Fund meetings in Washington this week had requested the U.S. extend the waiver. And he spoke about oil this week in a call with Prime Minister Narendra Modi of India, a big purchaser of Russian oil.
The waiver on Iranian oil, which the Treasury Department issued on March 20, allowed some 140 million barrels of oil to reach global markets and helped relieve pressure on energy supply, Bessent said last month.
Political and Economic Repercussions
LASTING DAMAGE
U.S. lawmakers from both political parties had slammed the administration over the sanctions waivers, saying they stood to help the economy of Iran while it was at war with the U.S. and of Russia as it was at war with Ukraine.
The waivers could impede the West's efforts to deprive Russia of revenue for its war in Ukraine and put Washington at odds with its allies. European Commission President Ursula von der Leyen has said now is not the time to relax sanctions against Russia.
Reactions from Russia and Industry Experts
Russian presidential envoy Kirill Dmitriev said in a social media post about the renewal of the waiver: "US-Russian economic and energy cooperation will continue." He had said the first waiver on Russian oil would free 100 million barrels of crude, equal to almost a day's worth of global output.
Brett Erickson, a sanctions expert at the consulting firm Obsidian Risk Advisors, said Friday's renewal is likely not the last waiver Washington will issue.
"The conflict has done lasting damage to global energy markets, and the tools available to stabilize them are nearly exhausted," Erickson said.
Reporting Credits
(Reporting by Ismail Shakil in Ottawa and Timothy Gardner and Jasper Ward in Washington; Editing by Ryan Patrick Jones, Alistair Bell and William Mallard)
Key Takeaways
- •The waiver extends through May 16 and follows earlier short-lived extensions on Russian and Iranian oil to tame surging energy prices amid Middle East conflict.
- •The Iran‑Israel war and Iran’s blockade of the Strait of Hormuz triggered the largest oil supply disruption in history, prompting IEA warnings of global energy instability and jet fuel shortages.
- •Critics say repeated waivers erode sanctions’ integrity, risking bolstering Russian and Iranian revenues despite geopolitical objections and U.S. domestic inflation concerns.
Frequently Asked Questions about US renews Russian oil waiver after pressure from countries dealing with Iran war price shocks
1Why did the US renew the Russian oil waiver?
The US renewed the Russian oil waiver due to pressure from countries facing high energy prices driven by the US-Israeli conflict with Iran.
2How long is the new Russian oil waiver valid for?
The renewed waiver allows Russian oil purchases for about a month, expiring on May 16.
3What countries are excluded from the waiver?
Transactions involving Iran, Cuba, and North Korea are excluded from the waiver.
4How has the global energy market been impacted by recent conflicts?
The war has caused the worst global energy supply disruption in history, damaging over 80 oil and gas facilities in the Middle East.
5Who pressed the US administration to renew the waiver?
Countries in Asia and US partner nations at G20, World Bank, and IMF meetings urged the US to extend the waiver.
