The Treasury Department executed an abrupt reversal Friday, extending sanctions relief that allows countries to continue purchasing Russian crude oil — just 48 hours after Treasury Secretary Scott Bessent publicly ruled out any such extension.

The Office of Foreign Assets Control issued General License 134B on April 17, authorizing transactions involving Russian crude and petroleum products loaded onto vessels as of that date. The waiver runs through May 16 and replaces a previous license that expired April 11.

The about-face came after intense pressure from Asian nations grappling with energy supply shocks. India, a major purchaser of Russian crude, has lost access to approximately 3 million barrels per day that previously transited the Strait of Hormuz, according to the Treasury Department.

President Trump discussed oil supplies during a Tuesday call with Indian Prime Minister Narendra Modi, highlighting the diplomatic urgency behind the decision.

A Whiplash Reversal

On Wednesday, Bessent told reporters the administration would not extend the earlier waiver — a statement that suggested a harder line on Russian energy exports. By Friday, that position had collapsed.

"As negotiations [with Iran] accelerate, Treasury wants to ensure oil is available to those who need it," a Treasury spokesperson said in a statement, as reported by The Epoch Times.

The new waiver excludes transactions with Iran, Cuba, and North Korea. It applies specifically to Russian oil already loaded onto tankers, effectively unfreezing supplies stranded at sea while broader sanctions remain in place.

Competing Pressures on Energy Policy

The Russian waiver extension stands in stark contrast to the administration's simultaneous hardening of sanctions on Iranian oil. Treasury declined to renew a separate waiver on Iranian crude sales, maintaining what it calls "maximum pressure" under its "Economic Fury" campaign against Tehran.

The juxtaposition reveals the competing imperatives bearing down on U.S. energy policy: punishing adversaries while preventing oil price spikes that could destabilize allied economies and American consumers.

Global oil prices tumbled 9 percent Friday to roughly $90 per barrel after Iran temporarily reopened the Strait of Hormuz, the critical chokepoint through which nearly one-fifth of global oil supplies flow. Tehran had intermittently closed the strait during the ongoing conflict, which enters its eighth week Saturday.

Iran has warned it could shut the waterway again if the U.S. Navy maintains its blockade of Iranian ports — a threat that keeps energy markets on edge despite Friday's price drop.

War Damage Compounds Supply Fears

The conflict between U.S.-Israeli forces and Iran has damaged more than 80 oil and gas facilities across the Middle East since late February, according to industry assessments. The destruction has tightened global supplies at a moment when geopolitical tensions already constrain energy flows.

For India and other Asian importers, the combination of Middle East disruptions and previous uncertainty about Russian crude access created a supply crisis. New Delhi has become one of the largest buyers of discounted Russian oil since Western nations imposed sweeping sanctions following Russia's invasion of Ukraine.

The waiver effectively allows that trade to continue, at least through mid-May, providing breathing room for Asian economies heavily dependent on energy imports.

A Pattern of Adjustments

Friday's reversal continues a pattern of energy-related policy shifts as the administration navigates the fallout from military operations against Iran.

On March 6, Bessent said the United States might ease sanctions on additional Russian oil after granting India a 30-day waiver to purchase Russian crude. Three days later, Trump announced Washington would waive oil-related sanctions on some countries.

"We're looking to keep the oil prices down," Trump said during a March 9 press conference in Miami, acknowledging that prices had risen artificially due to the conflict.

On March 18, Treasury eased sanctions on Venezuela's state-owned oil company, allowing U.S. firms to resume business with the entity amid tightening supplies. The following day, Bessent floated the possibility of lifting sanctions on Iranian oil already in transit.

An Iranian oil waiver issued March 20 ultimately allowed some 140 million barrels to reach global markets — a significant injection of supply that temporarily stabilized prices.

The Sanctions Tightrope

The administration's energy sanctions policy now walks a narrow line: maintaining economic pressure on Russia and Iran while preventing oil shocks that could undermine allied economies or trigger domestic political backlash.

That balancing act has produced a series of tactical retreats and reversals, including Friday's waiver extension. The pattern suggests that however much the administration emphasizes "maximum pressure" rhetoric, market realities and allied concerns continue to shape policy outcomes.

The May 16 expiration date sets up another decision point in less than a month. Whether the waiver gets extended again will likely depend on the trajectory of Middle East hostilities, the state of energy markets, and the persistence of diplomatic pressure from Asian capitals.

For now, the reversal ensures that Russian crude stranded at sea can reach buyers who need it — even if that outcome contradicts what the Treasury Secretary said two days earlier.