The US Treasury Department has extended a temporary 30-day license allowing some of the world’s most energy-dependent countries to access Russian oil cargoes currently stranded at sea amid global supply disruptions.
The decision, announced Monday by US Treasury Secretary Scott Bessent, comes as rising tensions in the Middle East and disruptions around the Strait of Hormuz continue to tighten global oil supplies and push up prices.
US gives temporary nod for stranded Russian oil shipments – What the new license allows
Under the temporary authorisation, vulnerable countries will be able to receive Russian crude oil and petroleum products that are already loaded onto ships and stranded at sea. The measure does not allow fresh Russian oil exports or new trade deals. Instead, it only applies to cargoes that are already in transit.
In a post on X, Bessent said the goal is to prevent supply shortages and help countries struggling with energy access. “Treasury Department is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea,” he wrote.
United States Secretary of the Treasury Scott Bessent tweets, "Treasury Department is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea. This extension will provide… pic.twitter.com/yPyWqECz5f
— ANI (@ANI) May 18, 2026
He added that the extension would provide “additional flexibility” while the US works with countries that may need separate approvals later.
Bessent also said the move is meant to “help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries.”
At the same time, he said the measure could reduce China’s ability to build up reserves of discounted Russian oil by redirecting supply toward countries facing immediate shortages.
India among countries expected to benefit
For India, the temporary 30-day US license comes as a major relief at a time when global energy supplies are under pressure because of disruptions around the Strait of Hormuz linked to the Iran conflict. India, which imports more than 85% of its crude oil needs, has sharply increased purchases of discounted Russian oil in recent months as supplies from parts of the Middle East tightened.
Russian oil imports into India touched record levels of around 2.25 million barrels per day in March 2026, making Moscow one of New Delhi’s biggest suppliers during the ongoing market uncertainty.
The latest waiver allows Indian refiners to access Russian oil cargoes that are already stranded at sea without the immediate risk of secondary US sanctions. That gives refiners some breathing room at a time when global crude prices have surged, and supply chains remain volatile.
Similarly, countries in South Asia, Africa, and other developing regions that rely heavily on affordable imported oil are expected to benefit from the decision. Meanwhile, New Delhi has increased oil imports from several countries, including the US, while continuing to purchase Russian oil where allowed under sanctions rules.
While the US has stressed that the measure is limited and does not amount to a easing of sanctions on Russia, it gives oil-dependent countries short-term flexibility to manage supply disruptions and protect their energy security during a tense geopolitical period.
India says Russian oil purchases continue regardless of US waiver
India on Monday made it clear that its Russian oil purchases are continuing irrespective of whether the US issues sanctions waivers or not. Speaking during a media briefing, Sujata Sharma, joint secretary in the petroleum ministry, said India’s crude oil imports from Russia are based on commercial needs and not tied to the US waiver system.
“Regarding the American waiver on Russia, I would like to emphasize that we have been purchasing from Russia earlier … before waiver also, during waiver also, and now also,” Sharma said.
She stressed that India’s focus remains on securing crude oil at commercially viable rates and ensuring stable supplies for the country. “It is basically the commercial sense which should be there for us to purchase,” she added.
Sharma also dismissed concerns over any immediate supply issues, saying India has already secured enough crude supplies from different sources.
“There is no shortage of crude. Enough crude has been tied up repeatedly … and this, whatever waiver or no waiver, it will not affect,” she said.
Third temporary extension this year
This is the third temporary license issued by the US in 2026 involving Russian oil cargoes already at sea. Earlier licenses issued in March, known as General Licenses 133 and 134, were initially meant for India before being expanded to other countries. Those permissions also applied only to oil that had already been loaded before specific deadlines.
US officials described those earlier waivers as limited “wind-down” measures rather than a broader rollback of sanctions.
Why global oil markets are under pressure
The move comes during a period of growing uncertainty in global energy markets.
Ongoing conflict involving Iran has affected movement through the Strait of Hormuz, one of the world’s most important oil shipping routes. A large portion of global crude oil passes through the narrow waterway between Iran and Oman.
The disruptions have reduced supply, increased shipping risks, and left several tankers carrying Russian oil waiting at sea as buyers deal with sanctions rules and transport problems. The Trump administration has largely maintained a tough stance on Russian and Iranian energy exports.
In April, Bessent had said the US would not renew earlier licenses because most pre-loaded cargoes had already cleared. But pressure from more than 10 poorer nations dealing with energy shortages reportedly pushed Washington to allow another short-term extension.