Trump Administration allows for Russian oil sales as energy prices soar

US President Donald Trump's Administration and the US Treasury have temporarily allowed sales of Russian oil in a bid to cool the global market. Photo / Getty Images

The Trump Administration has temporarily lifted sanctions on Russian oil shipments in an effort to calm markets and stem the economic fallout from its war on Iran, which has sent crude prices spiralling upward.

A general licence issued by the Treasury Department today allows Russia to begin selling some 128 million barrels of oil that are estimated to have already been loaded on to tankers previously sanctioned by the United States. The licence expires after 30 days.

“To increase the global reach of existing supply, @USTreasury is providing a temporary authorisation to permit countries to purchase Russian oil currently stranded at sea,” Treasury Secretary Scott Bessent posted on X. “The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term.”

Yesterday, futures for Brent crude oil closed at just above US$100 ($170) a barrel for the first time since 2022.

The move will provide a huge financial boost to Russia, which experts say has already been receiving about US$150 million per day from increased oil sales since the US attacked Iran two weeks ago.

It is certain to draw a rebuke from congressional Democrats, who attacked the administration for easing sanctions on Russian oil earlier this month, which allowed limited sales only to India. The latest licence is far more expansive, permitting sales anywhere in the world.

“This self-made global energy shock is serving to enrich [Russian President Vladimir] Putin and line his war coffers by offering him windfall profits,” several Senate Democrats said in a statement on March 6.

“Instead of changing course, the President is only making this situation worse by handing Putin, his shadow fleet, and traders still dealing in sanctioned oil a free pass to increase oil shipments to Russia’s second-largest importer. The new channels for evasion the President is opening, coupled with dramatically higher global energy prices, are giving Putin a huge financial boost and the means to continue his bloody war in Ukraine.”

Sign up to Herald Premium Editor’s Picks, delivered straight to your inbox every Friday. Editor-in-Chief Murray Kirkness picks the week’s best features, interviews and investigations. Sign up for Herald Premium here.