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The federal government has prolonged a waiver on sanctions against Russian oil for another month, prompting immediate criticism from Democratic leaders who called the move “disgraceful.”
Just two days prior, Treasury Secretary Scott Bessent had asserted that the U.S. would not renew these sanctions, only to pivot on Friday by extending them.
This policy permits nations, with the exceptions of Iran, Cuba, and North Korea, to buy Russian oil and petroleum products until May 16. The previous exemption concluded on April 11, and the update was posted on the Treasury’s official site.
In a unified statement, Senators Chuck Schumer, Elizabeth Warren, and Jeanne Shaheen denounced the decision.
“Make no mistake, Putin has reaped significant benefits from President Trump’s focus on Iran, as evidenced by Russia’s oil revenues nearly doubling in March. Enough is enough,” their statement declared.
‘President Trump needs to stop letting Putin play him for a fool and impose additional sanctions on Putin, who is clearly not feeling sufficient pressure from this President.’
‘If President Trump does not change course, the war in Ukraine will continue and more innocent people will die,’ it concluded.
Crude oil prices skyrocketed in March following the joint US-Israeli military strikes against Iran.
The Treasury Department extended a sanction exemption on Russian oil, potentially signaling a cooling of gas prices (file photo)
The Trump administration issued the reversal on Friday, resulting in swift backlash. Trump is pictured above on Thursday arriving in Las Vegas on Air Force One
Democrat senators questioned the decision to extend sanction exemptions, asking what message it sent to Russia and President Vladimir Putin, pictured above on Thursday
Since the start of the war, oil prices have increased by 25 percent and have skyrocketed by 45 percent since the beginning of the year.
One of the consequences of the conflict was the closure of the Strait of Hormuz, a critical waterway on the coast of Iran that controls a fifth of the world’s oil.
Americans felt the ramifications at the gas pump, with average prices surging from $2.98 to over $4 per gallon.
Some relief came on Friday when Iranian Foreign Minister Abbas Araghchi announced that all commercial vessels would be allowed through the Strait.
Araghchi said the Strait would be ‘completely open’ as a result of the ceasefire, which is set to expire next week as officials continue peace negotiations in Pakistan.
Araghchi, who has also been involved in the negotiations, has said that the Strait could close again if the US military blockade continues.
Trump echoed the announcement on Truth Social, but noted that the Naval blockade in the region would remain in ‘full force’ until the US reaches an agreement on nuclear energy with Iran.
After the announcement, the price of oil plunged 11.4 percent, its lowest level since March 10, marking the second-largest one-day drop since the war started.
US Treasury Secretary Scott Bessent, pictured above, said just two days before the announcement that the US would not be extending the exemption
Patrick De Haan, the head of petroleum analysis at GasBuddy, wrote on X that the opening of the Strait could translate to lower prices at the gas pump.
‘This could accelerate sending fuel prices lower starting this weekend with the national average likely falling below $4/gal to perhaps $3.65-$3.85 with diesel falling to $4.85-$5.15/gal in 3-4 weeks and could continue for a couple weeks barring any re-escalation,’ he explained.
The US first lifted the sanctions on March 11 in an effort to curb oil prices that had skyrocketed from the war in Iran.
Bessent said at the time that the decision was to promote stability while working to keep prices low.
‘This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction,’ he said in a statement.
‘The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term.’