The U.S. Treasury Department has extended its sanctions wind-down authorization for Russian oil shipments at sea, issuing General License 134B, which allows deliveries of Russian crude oil and petroleum products loaded onto vessels by April 17 to continue until May 16, 2026. This extension follows previous statements that suggested the waiver would not be renewed, highlighting a quick policy change as energy markets face pressures from the Strait of Hormuz crisis.
This latest license allows cargoes already in transit to reach their destinations without violating sanctions, marking a continuation of the wind-down licenses introduced earlier this year. The authorization, however, is limited to transactions that are essential for completing these existing voyages, such as shipping and port services, and does not permit any new Russian oil trade.
Additionally, the license reaffirms prohibitions on dealings with sanctioned jurisdictions, like Iran, reinforcing the distinct approaches the U.S. is taking toward Russian and Iranian energy sectors. While facilitating purchases of Russian oil that are already at sea, the U.S. is tightening restrictions on Iranian oil exports. This extension gives temporary relief to oil markets, particularly in Asia, but with ongoing uncertainty regarding the future of these policies, the chances of continued flexibility appear limited.
