US Authorizes Purchase of Russian Oil to Stabilize Energy Markets
The US has authorized countries to purchase sanctioned Russian oil and petroleum currently loaded on vessels at sea, aiming to mitigate the economic impact of the ongoing US-Israel conflict with Iran.
US Treasury Secretary Scott Bessent described the move as a temporary measure intended to
"promote stability in global energy markets"during the war. This authorization is set to remain in effect until 11 April.
"This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government,"Bessent stated.
Impact of Gulf Attacks and Strait of Hormuz Closure
Recent attacks on ships and energy infrastructure in the Gulf, coupled with the effective closure of the crucial Strait of Hormuz, have significantly disrupted global energy markets.
Oil prices surged above $100 per barrel on Thursday, while stock markets declined following attacks on three additional cargo vessels in the Gulf. Iran's new supreme leader also pledged to continue blocking the strait.
The Strait of Hormuz is a vital passage through which approximately one-fifth of the world's oil supply typically transits.
In Asian trading on Friday afternoon, oil prices slightly decreased, with Brent crude down 0.3% to $100.13 (£75.13) per barrel, and US-traded oil falling 0.7% to $95.01.
International and Regional Responses to Rising Energy Prices
The recent spike in energy prices has prompted various authorities to take action.
On Wednesday, the International Energy Agency (IEA) announced plans to release a record 400 million barrels of oil to the market.
Several Asian governments, major importers of Gulf oil, have introduced measures to address the situation.
For instance, the Philippines, which sources approximately 95% of its crude oil from the Middle East, has seen its president instruct public sector workers to adopt a four-day workweek to conserve fuel.
Additionally, Japan, South Korea, and Thailand have implemented price caps on petrol.
"The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term,"Bessent commented.
US Plans for Military Escort Through Strait of Hormuz
Earlier statements from Bessent indicated that the US government intends to begin escorting vessels through the Strait of Hormuz
"as soon as it is militarily possible".
He noted that the potential requirement for a military escort
"was always in our planning,"during an interview with .
When asked if the escort could commence in the coming days, Bessent replied,
"as soon as it is possible to ensure safe passage we will do it."
