The US Treasury allowed a sanctions waiver covering Russian seaborne oil to expire at midnight on Wednesday. However, President Donald Trump and other administration officials did not confirm whether the sanctions would immediately return.
The waiver had temporarily permitted certain transactions involving Russian oil as Washington sought to limit further disruption to global energy markets.
US Waived Sanctions During Iran War
The Trump administration introduced the waiver during the war with Iran. The move was designed to help vulnerable economies manage rising energy prices and tightening global oil supplies.
The situation may now change following a memorandum of understanding between Washington and Tehran aimed at ending the conflict.
The agreement could allow more Middle Eastern oil to return to international markets, reducing the need for Russian supplies.
Trump Watches Falling Oil Prices
Trump did not confirm whether the United States would reimpose sanctions on Russian oil.
Speaking to reporters during the G7 summit in France, he said the administration was monitoring the situation and watching how far oil prices might fall.
A day earlier, Trump suggested that Washington could soon allow the sanctions to return because oil exports from the Middle East had started flowing again.
Sanctions Target Russian Oil Revenue
The Trump administration imposed sanctions on Russian energy companies Rosneft and Lukoil last year.
The measures were intended to reduce Moscow’s oil revenue and increase pressure on Russia to end the war in Ukraine.
Russia remains one of the world’s largest oil exporters, alongside the United States and Saudi Arabia. Restrictions on Russian supplies can therefore have a significant effect on global energy prices.
Waiver Could Still Be Extended
The United States has previously allowed the waiver to expire before extending it several days later.
As a result, the absence of an immediate renewal does not necessarily mean the exemption has ended permanently.
The White House and the Treasury Department’s Office of Foreign Assets Control did not immediately comment on the latest expiration.
Iranian Oil Could Return to Global Markets
A senior US official said Tehran could begin selling oil immediately after a formal signing ceremony expected later this week.
However, restoring Iranian oil and gas exports to normal levels could take several months.
International Energy Agency Executive Director Fatih Birol has described the Iran war as the largest disruption to global energy markets in history.
Russia Says Waiver Helped Stabilize Markets
Kirill Dmitriev, Russian President Vladimir Putin’s special envoy, previously participated in discussions with US officials about extending the waiver.
On June 4, Dmitriev said Washington understood the importance of the exemption in supporting global energy market stability.
Meanwhile, US envoys Steve Witkoff and Jared Kushner are expected to visit Russia soon, according to the Kremlin.
The two officials have led US-backed negotiations aimed at bringing the war in Ukraine to an end.
