U.S. Extends 30-Day Window for Russian Oil Purchases to Stabilize Markets

The U.S. Treasury has temporarily permitted purchases of Russian crude oil and oil products loaded before 12:01 a.m. on the Dec. 12 local time deadline, authorizing them for 30 days through Jan. 11. The move is framed as a narrowly targeted step to stabilize global oil markets and keep supply chains from tightening further after price spikes tied to recent U.S.-Israel actions against Iran.

Scott Bessent, a U.S. Treasury official, said the purpose of the authorization is to broaden the global reach of existing supply chains. The measure is described as a short-term, targeted adjustment intended to prevent a broader disruption of oil flows.

Analysts cited by CNBC estimate about 124 million barrels of Russian crude remain tied up at sea on roughly 30 vessels. The amount involved represents roughly five to six days’ worth of oil that typically moves through the Strait of Hormuz, a chokepoint where around 20 percent of the world’s oil flows.

In London, Brent crude for May delivery closed up 9.2 percent, at $100.46 a barrel, after trading as high as $101.60 earlier in the session. This marked the first time since August 2022 that Brent settled above $100, underscoring how sensitive prices remain to supply constraints and sanctions dynamics surrounding Russia and Iran.

U.S. consumers are feeling the effect at the pump. The American Automobile Association (AAA) reported that the national average gas price hovered near $3.60 per gallon, a rise of more than 22 percent over the past month. The belt-tightening is acute as households grapple with higher energy costs and broader inflation.

Treasury officials emphasized that the measure is a short-term, narrowly tailored intervention. They noted Russia’s energy revenue largely comes from taxes collected at extraction, implying that even with lifted bans on purchases, the policy would not significantly boost Moscow’s government finances.

The department also noted that a similar 30-day exemption was recently extended to Indian buyers for Russian crude and that additional relaxations could follow. The move reflects ongoing U.S. policy balancing aims: to preserve global oil stability and avoid price shocks while maintaining pressure on Russia through sanctions. For U.S. readers, the policy matters because cheap, reliable energy inputs affect inflation, consumer budgets, and the competitiveness of American businesses and markets tied to energy-intensive industries.