US Keeps Russian Oil Deal Open Amid Global Energy Chaos

The U. S. has extended a short‑term permission that lets other nations buy Russian oil by sea, even though critics say it softens sanctions on Moscow. The Treasury Department approved the renewal for about a month, ending on May 16, and it still bars trade with Iran, Cuba and North Korea. The move follows pressure from Asian countries that need alternative fuel supplies after the price surge caused by tensions in the Middle East. The decision is part of a broader plan to tame soaring energy costs. A Treasury spokesperson said the agency wants to keep oil flowing as talks with Iran progress. Two days earlier, the Treasury Secretary announced that a similar waiver for Iranian oil would not be renewed. Oil prices fell roughly 9% on Friday, dropping to around $90 a barrel after Iran briefly reopened the Strait of Hormuz. Still, the ongoing conflict has already caused the worst supply shock in history, according to the International Energy Agency. The war, now in its eighth week, has damaged over 80 oil and gas sites in the region. Tehran threatens to close the strait again if U. S. naval blockades continue.High energy costs worry many U. S. politicians ahead of the November midterm elections. Some Republican leaders are worried that the price spike could hurt their reelection chances. The U. S. has also faced requests from allies at international meetings to keep the waiver active, and President Trump discussed oil issues with India’s Prime Minister Modi during a recent call. The Iranian oil waiver, issued in March, allowed about 140 million barrels to reach global markets and eased supply pressure. Critics from both sides of the political aisle argue that these waivers help enemy economies while wars rage on. They say the agreements undermine sanctions aimed at limiting Russia’s war funding and create friction with European partners. European leaders, including the Commission President, have warned that it is too early to loosen sanctions against Russia. Russian officials have praised the renewed cooperation, noting that a waiver could free up about 100 million barrels of crude—almost one day’s worth of world output. Experts predict that Washington may issue more waivers in the future, as global markets remain unstable and policy options shrink.