US permits countries to buy Russian oil to curb soaring crude prices

The United States has temporarily relaxed sanctions on Russian oil already at sea in an attempt to stabilise global energy markets rocked by the escalating US-Israel war with Iran and disruptions in the Gulf.

The emergency move allows countries to purchase Russian oil cargoes that are already loaded on vessels and in transit. The authorisation will remain valid until April 11 and is aimed at preventing a severe supply crunch as the conflict threatens one of the world’s most critical energy corridors.

Relief for global oil supply

The decision comes at a time when attacks on ships and energy infrastructure in the Gulf have intensified and the strategically vital Strait of Hormuz — through which about one-fifth of the world’s oil normally flows — has effectively been paralysed.

The waiver applies only to Russian oil shipments already on water and does not extend to new purchases. The US administration has described the move as a short-term step intended to keep energy markets functioning during the crisis.

Analysts say the measure reflects growing concern in Washington that the conflict could trigger a prolonged oil supply shock if tanker traffic through the Gulf remains disrupted.

Around 124 million barrels of Russian-origin oil were estimated to be stranded on vessels globally as of Thursday. Allowing these cargoes to be sold could temporarily ease supply shortages and help moderate price spikes.

Oil price stays above $100

Despite these efforts, global crude prices remain elevated.

Brent crude, the international benchmark, climbed above $100 a barrel earlier this week for the first time since the early phase of the Ukraine war four years ago. On Friday afternoon in Asian trading, Brent was around $100.13 per barrel while US-traded crude slipped slightly to about $95.

Oil prices have surged sharply this year, rising from roughly $60 a barrel at the start of the year amid the escalating Middle East conflict and mounting fears of supply disruptions.

Hormuz choke upsets markets

The near closure of the Strait of Hormuz has become the biggest driver of market volatility. The narrow waterway connects the Persian Gulf to global shipping lanes and is a key route for oil exports from major producers including Saudi Arabia, Iraq, Kuwait and the UAE.

Iran has warned it will block oil shipments from the region as long as US and Israeli military operations continue, while several cargo vessels have already been attacked in recent days.

Governments scrambling to check impact

Authorities worldwide are scrambling to cushion the impact of soaring energy costs.

The International Energy Agency has announced the release of a record 400 million barrels of emergency oil reserves to stabilise supply. Meanwhile, several Asian governments have introduced measures to curb fuel costs, including petrol price caps and energy-saving initiatives.

The US has also indicated it may deploy naval escorts for commercial vessels passing through the Strait of Hormuz once safe passage can be ensured, underscoring the growing geopolitical risks surrounding global energy supplies.