by N. Peter Kramer
The US government is allowing the sale of sanctioned Russian oil for the second time. It hopes to temper the sharply rising oil price. In doing so it undermines the international sanctions against Russia.
The unilateral decision to lift the sanctions on the trade in Russian oil, in an attempt to push oil prices down, is met with protest in Europe, that fears that Moscow can fill its war chest. According to US Treasury Secretary Scott Bessent, who announced the news on Friday morning, it s a ‘fine-tuned short-term measure’. The suspension lasts a month and only applies to ‘oil that is currently stuck at sea’ in tankers. Last week, the US already gave the green light for India to buy Russian oil again. Minister Bessent makes no bones about the fact on social media that President Donald Trump wants to relieve the increasing oil price. Since the war between the US and Israel with Iran broke out, the oil price has risen sharply, from about 70 dollars per barrel (159 liters) to more than 100 dollars, with peaks of up to 120 dollars.
So far the US has threatened punitive tariffs against countries that bought Russian oil. With the exemption, the US government is responding to the sharp rise in oil prices caused by the Iranian blockade of the Straight of Hormuz, an important strategic route for the supply of oil from the Persian Gulf. By allowing the purchase of Russian oil, the Americans hope that prices at the pump will fall. The Trump administration has presented Europe with a fait accompli. French President Emmanuel Macron, German Chancellor Friedrich Merz and British Prime Minister Keir Starmer all announced that they do not agree. Also the President of the European Council, Antonio Costa, expressed his ‘concern’ about the American decision. ‘This easing by the US alone could earn Russia about 10 billion dollars for the war in Ukraine’.
The Financial times reported that France and Italy, among others, want to negotiate a deal with Tehran to guarantee their ships safe passage through the Strait of Hormuz. But the new Iranian leader, Mojtaba Khameini, announced that the strategic strait will remain closed until further notice.
