US Extends Russian Oil Sanctions Waiver Through May 16

The Trump administration reversed course Friday and extended a sanctions waiver allowing countries to purchase Russian oil and petroleum products through May 16, just days after Treasury Secretary Scott Bessent said no extension would be granted.

The Treasury Department's Office of Foreign Assets Control posted the general license on its website Friday, permitting transactions that were set to become prohibited when the previous 30-day waiver expired last weekend. The move comes as the administration seeks to stabilize energy markets following price spikes triggered by the US-Israeli conflict with Iran.

Energy prices surged after the Iran conflict began, though the US and Iran agreed to a 14-day ceasefire last week that required reopening the Strait of Hormuz to alleviate supply concerns. The strait reopened twice following the ceasefire but closed again Friday after the US implemented a blockade in the waterway Monday.

Bessent told reporters Wednesday that neither the Russian nor Iranian oil waivers would be extended. His reversal Friday drew sharp criticism from Senate Democrats, who called it a 180-degree policy shift that benefits Vladimir Putin.

Senators Jeanne Shaheen, Elizabeth Warren, and Chuck Schumer issued a joint statement calling the extension shameful. They cited data showing Russian oil revenues nearly doubled in March, arguing Putin has been a major beneficiary of the administration's Iran policy. The senators urged the president to impose additional sanctions on Russia rather than providing relief.

The administration maintains the narrowly tailored waiver will not provide significant financial benefit to the Russian government. Bessent said in a social media post that President Trump is taking decisive steps to promote stability in global energy markets while addressing threats from the Iranian regime.

For investors, the waiver extension helps prevent further oil price volatility during an already turbulent period. Energy markets had faced uncertainty as the previous waiver expired, with potential supply disruptions threatening to push prices higher. The extension provides temporary stability through mid-May, though questions remain about the administration's longer-term sanctions strategy toward Russia.

The policy reversal highlights the tension between sanctions enforcement and energy market stability as the administration navigates concurrent geopolitical crises in Eastern Europe and the Middle East.

Sources: The Hill, Reuters, The Moscow Times, U.S. Treasury Department This story is developing.