US Treasury Secretary Scott Bessent indicated that the United States may lift sanctions on additional Russian oil supplies, following a recent decision to allow India to purchase Russian crude stranded at sea.
The move comes as tensions in the Middle East continue to disrupt global energy markets.
Speaking to Fox Business on Friday, Bessent explained that Washington has granted Indian refiners temporary approval to import Russian crude already located offshore, aiming to mitigate temporary supply gaps in the global oil market.
“We approved Treasury action allowing our allies in India to start purchasing Russian oil already at sea,” Bessent said. “And to address temporary shortages in global supplies, we may lift sanctions on additional Russian crude.”
Bessent highlighted that hundreds of millions of barrels of Russian crude remain under sanctions offshore, noting that lifting restrictions could effectively create new global oil supplies.
The announcement comes amid rising energy prices, with Brent crude surpassing $90 per barrel on Friday due to disruptions in tanker traffic through the strategic Strait of Hormuz. Some traders and energy executives warned that prices could exceed $100 per barrel if the conflict continues.
To stabilize shipping through the region, the Trump administration proposed a program via the US International Development Finance Corporation to provide insurance coverage for oil tankers, protecting vessels from potential losses of up to $20 billion as they transit the Strait of Hormuz.
Bessent expressed confidence in US efforts to counter Iranian disruption, stating, “Our campaign has been overwhelming. They are trying to create economic chaos, but I don’t believe they will succeed.”
Earlier on Friday, President Donald Trump called on Iranian leaders for “unconditional surrender”, vowing to continue targeting strategic sites within Iran until the regime complies. Bessent noted that operations planned for Friday night would include the most significant strikes since the weekend attacks began, reflecting the administration’s continued pressure strategy.
“We have accounted for all factors. This is part of the President’s calculations, and everything is proceeding according to plan,” Bessent added.
The combined measures signal a US effort to balance geopolitical pressure on Iran with the need to stabilize global oil markets, leveraging sanction relief as a tool to release stranded energy supplies.
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