US Authorizes Temporary Buy of Russian Oil to Ease Market Pressures
As of March 12, nearly 124 million barrels of Russian-origin oil were reportedly held at around 30 locations worldwide, enough to supply roughly five to six days of global demand.
“The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term,” US Treasury Secretary Scott Bessent said in a statement.
Bessent noted that the oil being purchased is already stranded due to Tehran’s closure of the Strait of Hormuz. He described the policy as a “narrowly tailored, short-term measure” limited to oil already in transit.
Crude oil prices have surged since the onset of the Iran conflict. Before the escalation, prices ranged from $60 to $70 per barrel, but by the start of this week, they had nearly doubled to $100–$120 per barrel.
Bessent stressed that the temporary move is not expected to generate “significant financial benefit to the Russian government,” explaining that most of Moscow’s energy revenue comes from taxes levied when the oil is extracted.
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