Bessent says Russia oil waivers cut energy prices as expiry looms June 17

US Treasury Secretary Scott Bessent said temporary sanctions waivers on Russian crude have lowered energy prices, as the emergency relief faces a June 17 expiration with oil above $100 a barrel.

"The waivers were designed to stabilize global energy markets during the Iran conflict, and they have succeeded in bringing prices down," Bessent said, as reported by Chinese media. The waivers, first issued in March after US-Israeli strikes on Iran disrupted flows through the Strait of Hormuz, have been extended twice for 30-day periods.

The relief covers about 100 million barrels of Russian crude stranded at sea, according to Kirill Dmitriev, Russia's presidential envoy. The US also released 172 million barrels from the Strategic Petroleum Reserve, coordinated with a record 400-million-barrel draw from the International Energy Agency. Brent crude traded at $99.24 a barrel in March after the waivers took effect, down from war-induced highs.

The waivers' expiration could remove a key supply buffer from global markets at a time when the Iran conflict has already pushed Brent above $100. Secretary of State Marco Rubio told the Senate Foreign Relations Committee on June 2 that the administration intends to end the relief "as soon as we possibly can," leaving the decision on a potential fourth extension with Bessent.

Waivers Emerged From Iran War Supply Shock

The emergency measures began in March 2026 as a direct response to the US-Israeli military campaign against Iran that started Feb. 28. Iran's blockade of the Strait of Hormuz — a chokepoint for about 20 percent of global oil transit — removed millions of barrels from daily supply, sending crude prices surging. The US Treasury initially granted a 30-day license allowing countries to buy Russian oil and petroleum products stranded at sea, a move Bessent said was intended to stabilize global energy markets roiled by the conflict.

Goldman Sachs predicted in March that Brent would average more than $100 a barrel that month and $85 in April, as energy prices remained volatile due to the Iran war, damage to Middle East energy infrastructure and disruptions in the Strait of Hormuz. The bank's forecast reflected the market's assessment that even with Russian supply flowing, the loss of Iranian barrels and transit risks would keep prices elevated.

Expiration Date Tests Russia Strategy

Rubio's testimony signals the administration's desire to return to aggressive enforcement against Russian energy revenues. The waivers have been extended twice — in April and May — each time for 30 days, as the White House balanced squeezing Moscow's war finances against preventing a global price spike.

India, which has become a major buyer of discounted Russian crude since the 2022 invasion of Ukraine, faces the most exposure to tighter enforcement. Indian refiners would need to source barrels elsewhere at significantly higher prices if the waivers lapse.

The broader sanctions architecture remains under pressure from circumvention. EU sanctions envoy David O'Sullivan told Euronews that China remains a "very big problem" because of the way it helps Russia bypass restrictions, with Beijing retaliating against European listings by banning seven defense companies from receiving Chinese-made products.

This article is for informational purposes only and does not constitute investment advice.