US Treasury allows sanctions waiver on Russian seaborne oil to lapse

US Treasury Secretary Scott Bessent had previously said he would not renew the general license allowing the purchase of Russian oil stored on tankers. As of early afternoon Washington time on Saturday, no renewal notice had been posted on the Treasury website. A Treasury spokesperson declined further comment.  Two Democratic US senators, Jeanne Shaheen and the controversial Elizabeth Warren, on Friday urged the Trump administration against renewing the waiver, claiming that it was providing revenue to Russia to aid its war in Ukraine, but there was no evidence it was bringing down fuel costs for American consumers.

The prior extension was part of the Trump administration's effort to control global energy prices ​that have shot higher during the Iran war, including loans from the Strategic Petroleum Reserve and a temporary waiver of a shipping rule known as the Jones Act. In addition, President Donald Trump has said he supported pausing the 18.4-cent-a-gallon federal tax on gasoline.

The moves have done little to calm US gasoline prices, which are currently at about $4.50 a gallon, the highest since the Biden administration. Both domestic and international oil prices have hovered around or above $100 per barrel since the war began on February 28.   Trump told reporters on Friday returning from Beijing that he had discussed with Chinese President Xi Jinping possibly lifting sanctions on Chinese companies that buy Iranian ‌oil and will make a decision soon.    India is the top consumer of Russian seaborne crude, and its purchases have been near record highs in April and May following previous sanctions waivers.