US extends Russian oil sanctions waiver to June 17

The United States announced a 30‑day extension of its sanctions waiver for Russian crude already loaded on tankers, now running until June 17, 2026 [1][3]. The move, made at a G7 finance ministers meeting in Paris, aims to keep vulnerable nations supplied while global oil markets remain volatile.

Extension details and market context

Treasury Secretary Scott Bessent said the new General License No. 134C replaces the expired license and continues to allow sales, delivery, or unloading of Russian crude and petroleum products that were on vessels by April 17 [3][4]. The waiver does not cover any entities in Iran, North Korea, Cuba or the sanctioned parts of Ukraine [3]. The United States does not import Russian oil, but the extension eases pressure on major buyers such as China and India, which together account for roughly two‑thirds of Russian oil exports [1][2].

The extension comes after the first waiver in March, which was intended to stabilise markets after crude prices spiked above $100 per barrel following US‑Israeli strikes on Iran [2]. Since then, floating storage of Russian crude has fallen from a high of about 19 million barrels in late January to roughly 7 million barrels now, reflecting tighter supply and ongoing Ukrainian drone attacks on export infrastructure [2]. Despite these constraints, Russia continues to ship roughly 9.1 million barrels per day, below its OPEC+ quota of 9.5 million bpd [2].

Political and economic reactions

European allies and Ukraine have criticised the extension, arguing it bolsters Russia’s war financing by keeping oil revenues flowing [1][2]. US senators Jeanne Shaheen and Elizabeth Warren labeled the waiver an “indefensible gift” to President Vladimir Putin, noting it has not lowered domestic fuel prices or stabilised global markets [1][2]. Conversely, the Treasury argues the license provides “additional flexibility” to the most energy‑vulnerable nations and helps prevent China from stockpiling discounted Russian oil [2].

What to watch

• June 17 waiver expiry – Whether the Treasury will issue another extension or let the waiver lapse.
• Oil price trends – Brent crude’s movement around the $110 per barrel level, which could influence future policy decisions.
• Geopolitical developments – Progress on the US‑Iran peace talks and any reopening of the Strait of Hormuz, a key chokepoint for global oil flows.

The extension underscores the delicate balance Washington faces: supporting energy‑vulnerable countries while confronting criticism that the policy indirectly funds Russia’s war effort. The next decision on the waiver will test how far the US is willing to prioritize market stability over geopolitical pressure on Moscow.