The US weighs easing sanctions on Russian oil to stabilize markets while approving bomb sales to Israel during the war on Iran.
Key Developments
- US Treasury signals it may lift sanctions on additional Russian oil shipments to stabilize global supply.
- Brent crude surges above $90 per barrel amid war disruptions in the Strait of Hormuz.
- Washington launches a $20 billion reinsurance plan to protect ships crossing the strait.
- US State Department approves 12,000 1,000-pound bombs for Israel using emergency authority.
- Democratic lawmakers accuse the Trump administration of bypassing Congress over the arms sale.
- Iran says US-Israeli attacks have killed over 1,300 Iranian civilians since February 28.
US Considers Lifting Sanctions on Russian Oil
The United States is considering easing sanctions on Russian oil shipments in an effort to stabilize global energy markets amid disruptions caused by the war in the Middle East.
US Treasury Secretary Scott Bessent said Washington has already taken steps to allow some purchases of Russian crude.
“Treasury agreed to let our allies in India start buying Russian oil that was already on the water,” Bessent said in an interview with Fox Business.
“To ease the temporary gap of oil around the world, we have given them permission to accept the Russian oil. We may unsanction other Russian oil,” he added.
IRGC Says It Targeted US Oil Tanker, Warns Ships over Strait of Hormuz
Bessent told Fox Business that large volumes of Russian oil are currently stranded due to sanctions, saying: “There’s hundreds of millions of sanctioned barrels of crude on the water now”.
“In essence, by unsanctioning them, Treasury can create supply.”
Energy markets have been under pressure since the war between the United States, Israel and Iran disrupted shipping routes near the Strait of Hormuz, a critical artery for global oil trade.
According to the US-based news website Bloomberg, Brent crude surged past $90 per barrel, with traders warning prices could exceed $100 per barrel if the conflict continues.
Preventing Breakdown
To prevent further disruption to oil shipments, the Trump administration has reportedly introduced a plan aimed at protecting tankers passing through the Strait of Hormuz.
According to Bloomberg, the plan allows the US International Development Finance Corp. to establish a reinsurance program to shield vessels traveling through the strait from potential losses.
The program would cover up to $20 billion in losses tied to attacks or disruptions affecting ships operating in the Gulf. US officials say the measure is designed to prevent a breakdown in global oil supply chains.
Bessent also defended the ongoing military campaign against Iran.
‘We Hit USS Abraham Lincoln’ – Dispatches from the Battlefield – Day 6
“Our campaign has been overwhelming,” he claimed, adding: “They’re trying to create economic chaos, and I don’t think they’re going to be able to do it.”
He added that the United States was preparing additional military operations, claiming:
“Tonight will see the ‘biggest’ barrage since the attacks began last weekend.”
US Approves New Bomb Sale to Israel
At the same time, Washington approved a new weapons transfer to Israel amid the expanding war, bypassing congressional review.
According to Reuters news agency, the US State Department approved a sale of 12,000 BLU-110A/B general-purpose 1,000-pound bomb bodies. The principal contractor for the weapons will be Repkon USA, a Texas-based company.
The US Secretary of State Marco Rubio determined the sale was necessary, claiming that the transfer was “in the national security interests of the United States.”
The approval was made using emergency authority, allowing the administration to bypass congressional review.
The decision drew criticism from Democratic lawmakers, who argued the administration circumvented Congress in order to accelerate weapons deliveries.
EXPLAINER: Why the Strait of Hormuz Could Shape the War’s Outcome
Democratic Representative Gregory Meeks said the move contradicted claims that Washington was fully prepared for the war.
“The Trump administration has repeatedly insisted it was fully prepared for this war,” Meeks said, adding that “rushing to invoke emergency authority to circumvent Congress tells a different story.”
“This is an emergency of the Trump administration’s own creation,” he added.
The United States and Israel launched their aggression against Iran on February 28, triggering missile and drone retaliation by Tehran across the region.
Rising Casualties
The war has already caused significant casualties across multiple countries.
According to Iran’s ambassador to the United Nations, US-Israeli attacks have killed at least 1,332 Iranian civilians and wounded thousands more.
IRGC Claims Full Control of Strait of Hormuz as Trump Considers US Naval Escorts
Iranian officials also say several senior leaders, including Supreme Leader Ayatollah Ali Khamenei, were killed in the attacks.
The US military has reported that six American service members were killed in an Iranian strike on a facility in Kuwait.
Israel has said that at least ten civilians have been killed inside the country during Iranian missile attacks.
(PC, Bloomberg, Reuters)
Complete blockade of oil to Cuba, and complete closure of everything to Palestine! How dare they complain about the mere price of oil! All they want is their billionaire financial markets and war machines humming while they crush humanity. There isn’t even any lipstick on any of these pigs.