US allows Russian oil purchase to stabilise global energy markets

The United States (US) has granted temporary permission for the purchase of Russian oil as part of measures aimed at stabilising global energy markets.

The move was the latest attempt by President Donald Trump’s administration to tame energy prices after the US and Israeli strikes on Iran and the subsequent response by Tehran widened regional tensions and paralyzed shipping through the Strait of Hormuz, disrupting vital Middle East oil and gas flows and sending energy prices higher.

According to US Treasury Secretary Scott Bessent, the temporary exemption will apply only to Russian oil shipments that are already at sea. He urged that the move is intended to prevent disruption in global energy supplies.

The treasury secretary added that the decision is unlikely to provide significant financial benefit to Russia. He also noted that oil and gas production in the United States has reached record levels, which he said would benefit the US economy over the long term.

On Wednesday, Washington ​announced it would be releasing 172 million barrels of oil from the strategic petroleum reserve in an effort to curb sky-rocketing oil prices in the wake of the ​war in Iran.

That release was part of a broader commitment by the 32-nation International Energy Agency to release 400 million barrels of ⁠oil.