The United States has announced a further 30-day extension of a sanctions waiver that permits the purchase of Russian seaborne oil, aiming to support “energy-vulnerable” nations affected by the conflict involving Iran. The decision reverses earlier indications that no additional extension would be granted.

Treasury Secretary Scott Bessent stated that the department issued a new 30-day general license after the previous waiver expired on Saturday. The measure allows temporary access to Russian oil and petroleum products currently stranded on tankers, without breaching strict US sanctions imposed on major Russian energy companies.

“This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries,” Bessent said.

Although Bessent previously indicated that no further extensions were planned, he said Monday that the waiver would enable existing supplies to be redirected to countries facing urgent energy needs. He argued that this would help those nations compete with China for oil that had previously been restricted under sanctions.

This marks the second occasion on which the Treasury has allowed the waiver to expire before reinstating it shortly afterward.

Two senior Democratic senators, Jeanne Shaheen of New Hampshire and Elizabeth Warren of Massachusetts, sharply criticized the decision, calling it an “indefensible gift” to Russian President Vladimir Putin.

“Every additional dollar the Kremlin earns from this license helps Putin finance his illegal war against Ukraine and kill innocent Ukrainians,” they said in a joint statement. They also contended that the sanctions relief has not lowered gasoline prices in the United States or brought stability to global energy markets.

Last year, the Trump administration imposed sanctions on Russian energy giants Rosneft and Lukoil in an effort to pressure Moscow to end its war in Ukraine by cutting off critical oil revenue.

However, following US and Israeli strikes on Iran that pushed global oil prices higher, the Treasury first introduced the temporary waiver in March. The goal was to ease supply shortages and limit price surges by allowing the release of Russian oil and petroleum products that had already been loaded onto tankers. The waiver does not apply to newly produced Russian oil.

Energy analysts noted that while the short-term waivers may offer relief to certain countries heavily reliant on Gulf oil supplies, they are unlikely to significantly reduce gasoline prices in the US. Stephanie Connor, a former policy director at the Treasury’s Office of Foreign Assets Control, said it remains uncertain whether these temporary authorizations have meaningfully affected US fuel costs. She added that British and European sanctions on Russian oil purchases are still in force.

As with the earlier waiver, the current license permits transactions involving Russian crude and petroleum products that were loaded onto vessels by 17 April. This restriction caps the volume eligible under the waiver and excludes oil shipped more recently.

Charles Lichfield, deputy director of the Atlantic Council’s GeoEconomics Center, said the waivers are likely to increase Russia’s oil revenues, which have already benefited from rising global prices. He added that the measure could help cushion the economic impact of intensified Ukrainian strikes on Russian refineries and energy infrastructure.

“Given the information coming out of the Russian economy that looks bad, this might be the time to really hit them with sanctions,” Lichfield said. “But I don’t see that the administration has come to that conclusion.”

On Monday, benchmark Brent crude futures climbed approximately 2.6%, closing above $112 per barrel amid mounting concerns about tight global supply.

Bessent, speaking from Paris where he is attending a meeting of Group of Seven finance leaders, also emphasized the need for G7 nations and other allies to strengthen enforcement of sanctions on Iran.