The U.S. Treasury Department on Friday extended its pause on sanctions against Russian oil shipments to ease shortages from the Iran war, contradicting Treasury Secretary Scott Bessent’s public denial of such a move three days earlier. The so-called general license exempts U.S. sanctions for 30 days on deliveries of Russian oil that had been loaded on tankers as of Friday.
The extension underscores how the Iran war has boosted Moscow’s ability to profit from its energy exports despite the broader international sanctions regime imposed after the invasion of Ukraine. The administration has not explained the shift from its previously stated position.
The Treasury’s move extends a similar 30-day license issued in March that exempted Russian oil loaded before March 11 from U.S. sanctions. Together, the two licenses create a rolling 60-day window during which Russian oil in transit can complete delivery without triggering American penalties against purchasing entities or shipping companies.
The Contradiction
On Wednesday at the White House, Bessent stated a different position: “We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil.” The Treasury’s announcement Friday directly contradicted his statement just three days earlier.
Bessent’s statement contradicts the Treasury’s action, revealing a gap between the administration’s stated policy and its implementation. The Treasury had previously signaled that it would maintain economic pressure on Russia’s energy sector. The extension instead suggests that energy supply considerations from the Iran war have taken priority, at least temporarily.
How the License Works
The general license permits Russian oil already in the supply chain to reach its destination without incurring U.S. penalties. The practical effect is to clear market supplies of Russian oil while technically maintaining the sanctions framework on future shipments.
Supply Pressures Drive Shift
The administration did not publicly explain the shift. Whether the decision reflects changing risk calculations related to Middle East energy supplies, pressure from energy markets, negotiating leverage with allies, or other strategic considerations remains unclear. The Iran war has constrained global oil supplies and elevated prices worldwide, suggesting the administration views allowing some Russian oil to market as preferable to tighter supply, at least temporarily.