In a significant policy shift, the United States has temporarily eased sanctions on Russian oil exports to help cool global energy markets disrupted by the escalating conflict in the Middle East.
The move, confirmed by US Treasury Secretary Scott Bessent in a Friday interview with Fox News, comes as joint US-Israeli strikes on Iran and subsequent retaliatory attacks have crippled shipping through the Strait of Hormuz, a critical maritime choke point for global energy supplies.
“To ease the temporary gap of oil around the world, we have given India permission to buy Russian crude,” Bessent stated, adding that Washington “may unsanction other Russian oil” to further boost supply. He promised a continued cadence of measures to bring relief to the market during the conflict, including US Navy escorts for civilian vessels through the Strait of Hormuz within one to two weeks.
The crisis in the Middle East has sent shockwaves through global energy markets. With commercial traffic through the Strait of Hormuz at a near-complete halt, Iraq has been forced to cut output, Kuwait has reportedly reduced production after running out of storage, and Iran’s own oil exports have effectively ceased. The disruption has propelled Brent crude to above $94 a barrel and WTI above $92—their highest levels since 2023.
EU Politicians Rethink Russia Sanctions as Energy Crisis Bites
The energy crunch has reignited debate within the European Union over the bloc’s sanctions on Moscow. Several high-profile politicians are calling for a rollback of measures that have severed a once-dominant energy relationship with Russia, even as the US steps in to fill the gap.
The calls have been amplified by a warning from Russian President Vladimir Putin, who suggested Moscow could halt gas supplies to Europe immediately, rather than waiting for the EU’s planned phase-out by 2027. Putin framed the potential move as a redirection of supplies to more “reliable” partners, blaming Europe’s current crisis on its own “misguided policies.”
French politician Florian Philippot, leader of the Patriots party, labeled the EU’s sanctions “idiotic” and “ruinous,” arguing they amount to collective self-harm for Europeans. In Germany, Sahra Wagenknecht, leader of the BSW party, has called for resuming Russian oil imports to ease prices, while AfD co-chair Alice Weidel has urged an end to a one-sided reliance on the US and the Middle East for LNG.
These sentiments echo longstanding criticisms from leaders in Hungary, Slovakia, and Italy, who have consistently argued that the sanctions hurt the EU’s economy more than they do Russia’s. The urgency has grown as European gas prices hit a three-year high this week, exacerbated by Qatar, the world’s second-largest LNG exporter, halting production due to the Hormuz disruption. The EU currently relies on the US for 60% of its LNG, with Middle Eastern sources, primarily Qatar, supplying 5-15%.
Russia Poised to Capitalize on Market Shift
As the US adapts its sanctions policy to stabilize markets, President Putin indicated that the turmoil presents new opportunities for Russia. “Against this backdrop, we can look for new buyers who have lost supplies that previously moved through the strait,” he said, suggesting Moscow is ready to redirect its oil and gas to alternative markets to replace the disrupted Gulf flows.
The Kremlin has condemned the US-Israeli strikes on Iran as a “premeditated and unprovoked act of aggression.”
Strategic Autonomy vs. US Pressure: India’s Balancing Act
The US waiver granted to India underscores the delicate balance in global energy politics. While the Trump administration has long pressured New Delhi to halt Russian oil imports—with US Ambassador Sergio Gor stating last month that trade talks were being used to push India toward Venezuelan oil—India has maintained its position as a primary buyer of discounted Russian crude alongside China.
Indian Foreign Minister S. Jaishankar recently reaffirmed New Delhi’s commitment to “strategic autonomy,” stating that energy decisions are made based on the country’s “best interest” regarding costs and risks. Moscow has stated it has no information suggesting India has paused Russian crude imports.
