U.S. Issues Temporary General License for Russian Oil in Transit to Stabilize Prices

The United States on the 12th announced a temporary general license from the Office of Foreign Assets Control (OFAC) to allow the sale of Russian crude oil and petroleum products that were loaded onto ships before 12:01 a.m. local time on that day, with sales permitted through April 11. The license applies to Russian oil cargoes currently in transit and aims to provide a measured path for buyers to acquire closely watched shipments.

The move comes as oil markets have been volatile amid broader Middle East tensions following U.S. and Israeli strikes on Iran. The upheaval has pushed global crude prices higher, with benchmarks moving above $100 per barrel as fears of supply disruptions in the region intensified.

Treasury official Scott Bessent stated on the platform X that the measure is intended to widen the global reach of existing supply, allowing countries to purchase Russian oil that is already afloat. He described the action as a narrowly designed, short-term step.

Bessent also said the license is limited in scope, applying only to oil already in transit, and is not expected to provide meaningful financial windfall to the Russian government, which he noted derives most revenue from taxes collected at the point of extraction.

In a separate policy move announced the same day, the U.S. Energy Department said it will release about 172 million barrels from the Strategic Petroleum Reserve over roughly 120 days beginning next week, part of a broader effort to stabilize near-term U.S. fuel costs.

The OFAC license and the SPR release reflect a balancing act for Washington: maintain pressure on Moscow through sanctions while addressing near-term price volatility that can affect American consumers, inflation, and energy security. The policy underscores how intertwined U.S. sanctions, global energy markets, and foreign policy are in the current crisis environment.

For U.S. readers, the developments matter because they influence gasoline and heating costs, the trajectory of inflation, and the reliability of energy supplies. The changes also illustrate how Washington uses both sanctions tools and emergency stock releases to manage price shocks in a highly interconnected global oil market.