US Treasury allows sanctions waiver on Russian seaborne oil to lapse

The Trump administration let a sanctions waiver lapse that had allowed countries including India to buy Russian seaborne oil, removing a temporary supply relief mechanism. The move comes after a one-month extension was used to ease oil supply shortages and high prices tied to Iran's closure of the Strait of Hormuz. The decision is likely to tighten the market outlook for crude and keep geopolitical risk premium elevated.

Analysis

The Trump administration let a sanctions waiver lapse that had allowed countries including India to buy Russian seaborne oil, removing a temporary supply relief mechanism. The move comes after a one-month extension was used to ease oil supply shortages and high prices tied to Iran's closure of the Strait of Hormuz. The decision is likely to tighten the market outlook for crude and keep geopolitical risk premium elevated.