In a significant move aimed at stabilising global energy markets, the United States has issued a 30-day temporary license allowing countries to purchase Russian oil and petroleum products that are currently stranded at sea. The decision, announced by US Treasury Secretary Scott Bessent on Thursday, comes amid rising uncertainty in global energy supply due to escalating tensions and conflict in the Middle East, involving the US, Israel and Iran.

What Does It Mean?

According to the US Treasury department’s statement, the license authorises the delivery and sale of Russian crude oil and petroleum products loaded on vessels on or before March 12. The sale will remain valid until April 1. “The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing Russia-related General License 134, "Authorising the Delivery and Sale of Crude Oil and Petroleum Products of Russian Federation Origin Loaded on Vessels as of March 12, 2026,” the statement noted.

ALSO READ: LPG Supply Shortage Pushes Kolkata Eateries To Cut Down On Delicacies, Shift To Wood-Fired Ovens

'No Significant Benefit To Russia' 

In a separate post on X, Bessent stated that the Trump administration is taking steps to promote stability in global energy markets, calling the increase in oil prices a :"short-term and temporary disruption". She highlighted that this is a short-term measure and applies only to Russian oil in transit, adding that it will not significantly benefit Russia. She affirmed that the Trump administration is continuously working to keep prices low amid the ongoing conflict with Iran. Bessent noted that the move aims to “increase the global reach of existing supply.”

She wrote, "@POTUS is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime. To increase the global reach of existing supply, @USTreasury is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea."

Bessent added, "This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction."

Could Trump's Move Ease Soaring Global Oil Prices?

This temporary license could influence global oil prices as it increases the availability of supply in the international market. If countries start purchasing the stranded Russian oil, it may ease immediate supply shortages and help prevent a sharp rise in prices. However, since the license is limited to 30 days, its long-term impact on global oil prices may be limited. 

Meanwhile, the US Energy Department said it would be releasing 172 million barrels of oil from the strategic petroleum reserve to maintain the supply. The decision was aimed at curbing sky-rocketing oil prices due to the current situation.

ALSO READ: Iran-Israel War: Tehran Assures Safe Passage For Indian-Flagged Ships In Hormuz Amid Series Of Attacks On Vessels