US extends sanctions waiver on Russian oil to aid vulnerable countries

The U.S. Treasury will extend its sanctions waiver on Russian seaborne oil, which lapsed on Saturday, after several countries asked for more time to buy it,

a source familiar with the decision said on Monday.



The waiver will last another 30 days and was sought by several poor and vulnerable countries cut off from Gulf oil supplies by the Iran war and the closure of the Strait of Hormuz, the source said. The source declined to name the countries requesting the extension.



The action marks the second time the Treasury has allowed the sanctions waiver to lapse and subsequently extend it. The waiver was first issued in March in an attempt to ease oil supply shortages and mitigate price spikes prompted by the U.S.-Israeli attacks on Iran by releasing sanctioned Russian oil and

petroleum products stranded in tankers.



The move has done little to reduce oil prices but has aided India, which was among the largest buyers of Russian oil prior to the U.S. issuing severe sanctions against Russian oil majors to put pressure on Moscow over its war in Ukraine.