The U.S. Government is considering expanding the lifting of sanctions on Russian oil to alleviate global market pressures, according to comments made Friday by Treasury Secretary Scott Bessent. The move comes as conflict in the Middle East has driven international crude prices higher.
Treasury Secretary Scott Bessent announced Friday, March 7, 2026, that the U.S. Is “studying” a “lifting of restrictions” on Russian oil to “create supply.” This potential shift in policy comes as the price of West Texas Intermediate (WTI) crude, the U.S. Benchmark, jumped 12% on Friday and 36% over the week, fueled by tensions in the Middle East and near-total disruptions to passage through the Strait of Hormuz, a critical waterway for global oil transport. The Strait of Hormuz normally accounts for 20% of global oil consumption.
“There are, at sea, hundreds of millions of barrels of Russian oil under sanctions,” Bessent explained during an appearance on Fox Business. “And by lifting the restrictions, the Treasury can create supply.” The decision highlights the U.S. Administration’s concern over rising energy costs and potential supply shocks.
The U.S. Government already authorized the delivery of Russian oil to India on Thursday, a move Bessent asserted “will not provide significant financial benefit to the Russian government.” He indicated Friday that an expansion of this measure, presented as temporary, is under consideration. “We will continue to announce measures regularly to relieve the market during this conflict,” he said.
Kirill Dmitriev, an economic advisor to the Kremlin, responded to Bessent’s comments via X, stating that Russia “has been discussing this issue with the United States, as Western sanctions have proven negative for the global economy.” This suggests a degree of ongoing dialogue between the two countries regarding energy markets.
The potential easing of sanctions comes as analysts express concerns about a surge in prices if the U.S. Fails to quickly secure maritime traffic through the Strait of Hormuz. The move underscores the complex geopolitical factors influencing global energy markets and the U.S.’s willingness to explore unconventional solutions to stabilize prices.
Bessent’s comments follow a week of significant volatility in the oil market, with prices reaching their highest levels since 2023. The situation is being closely monitored by investors and policymakers alike, as energy prices have a broad impact on economic growth and inflation.
