US temporarily lifts sanctions on Russian oil stranded at sea in boost for Kremlin

 The administration of Donald Trump has issued a new license allowing countries to temporarily purchase certain Russian oil products, an effort aimed at easing surging crude prices following the conflict involving Iran. Crude oil prices have jumped sharply following the closure of the Strait of Hormuz, a key route through which about one-fifth of the worlds oil supply normally passes, triggering a major disruption in global energy supplies.Irans Islamic Revolutionary Guard Corps has warned it could set the regions oil and gas infrastructure on fire in retaliation for any attacks on Irans energy facilities. Reports indicate that US national security officials underestimated Irans willingness to shut the strait and the scale of the resulting global energy crisis. Washington is now moving quickly to contain the economic consequences.At least 16 oil tankers, cargo ships and other vessels have been attacked in and around the Strait of Hormuz, the Persian Gulf and the Gulf of Oman over the past two weeks, according to the United Kingdom Maritime Trade Operations. Iran has reportedly deployed mines in the strait, while the US military said it destroyed 16 minelaying vessels earlier in the week.Despite the escalating threat, Trump suggested in an interview with Fox News that oil tanker crews navigating the strait should show some guts, insisting there was nothing to be afraid of.The US move to temporarily lift sanctions on Russian oil, despite previous restrictions intended to limit revenue for Russia during its war with Ukraine is aimed at stabilizing global supply.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, US Treasury Secretary Scott Bessent wrote on social media. He added that the authorization is a short-term measure applying only to oil already in transit and would not significantly benefit the Russian government, which receives most of its energy revenue from taxes at the point of extraction. According to the US Treasury, the license applies only to Russian crude or petroleum products loaded onto vessels as of March 12 and allows those shipments to proceed until April 11. Democratic Senator, Jeanne Shaheen criticized the decision on social media, accusing the administration of boosting Moscows finances. As Vladimir Putin helps Iran target Americans in the Middle East, @POTUS is now filling the Kremlins war coffers, she wrote. The US had earlier granted Indian refiners a 30-day waiver to purchase Russian oil already stranded at sea, a step officials said was intended to keep supplies flowing into global markets.With the energy shortage worsening, governments worldwide have begun limiting fuel consumption, capping fuel prices and tapping emergency reserves in an effort to cushion the economic impact.Analysts warn that even if tensions ease quickly, the reopening of the Strait of Hormuz may take time.Meanwhile, analysts at Goldman Sachs raised their forecast for Brent crude oil by 20% this year. The bank now expects prices to reach $100 per barrel in March and $85 per barrel in April if the disruption lasts about three weeks.However, if the closure of the Strait of Hormuz extends to two months, the bank said its end-of-year forecast could rise from $71 per barrel to $93 per barrel. The post US temporarily lifts sanctions on Russian oil stranded at sea in boost for Kremlin appeared first on Linda Ikeji Blog.