After the start of the war in the Middle East, the US eased sanctions on Russian oil purchases due to the oil crisis. However, Washington said that it will not renew that discount. This decision will have a big impact on India. Because India was the main beneficiary of the ban exemption.
US Treasury Secretary Scott Besent told reporters, ‘we will not renew the general license on Russian oil and the same decision has been taken on Iranian oil. The concession was applicable to oil on board before March 11 and has already been used.’
The decision effectively ends efforts by the Trump administration to cut prices by ensuring additional oil supplies amid the global energy crisis. Fuel prices around the world, including the United States, have risen sharply since the Middle East conflict intensified.
These temporary concessions were short-term measures, aimed at keeping rising energy prices under control. Oil picked up by ships ahead of schedule was allowed to reach international markets on a limited scale. After Iran’s strengthening of control over the Strait of Hormuz in March, the United States granted a 30-day license to allow the sale and supply of Russian oil shipped before March 12. This exemption expired on April 11.
Similarly, on March 20, a concession was made in the case of Iranian oil, which resulted in about 140 million barrels of oil reaching the global market. This exemption is scheduled to expire on April 19. With this decision, Washington is believed to be strengthening the ‘maximum pressure’ policy on Iran.
Source: NDTV