Trump Temporarily Lifts Sanctions on Russia To Avoid Energy Crisis

President Trump has temporarily lifted oil sanctions against Russia as part of a desperate effort to stave off an energy crisis created by the war with Iran.

The New York Times reported that the sanctions were lifted Thursday. The change applies to Russian oil that is currently at sea and will last until April 11. The sanctions came about as part of the U.S. effort to punish Russia for its invasion and ongoing war in Ukraine.

Since the war, oil prices have spiked and created concerns that the conflict will cause a global energy crisis. Early Friday, the Brent crude oil price topped $100 per barrel, while WTI crude was in the mid-90s.

Iran has repeatedly lashed out at oil and natural gas infrastructure in the Middle East. Also, the country has effectively closed the Strait of Hormuz, a critical shipping corridor through which 20 percent of the world’s oil supply travels.

The decision to ease sanctions on Russia comes after the International Energy Agency unanimously agreed to release 400 million barrels of oil from emergency reserves. It is the largest reserve release in history.

“To increase the global reach of existing supply, the (U.S.) is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea. This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction,” Treasury Secretary Scott Bessent wrote on X.

The decision was criticized by Ukrainian President Volodymyr Zelenskyy Friday.

“The lifting of sanctions means that [Russia] will receive more money and there will be more drone attacks,” Zelenskyy said, according to Politico. “It’s not very logical.” “Russia will get money for its war machine, and there are a lot of drones that are built on Russian soil to destabilize the Middle East,” he added.

Earlier this week, the International Energy Agency unanimously agreed to release 400 million barrels of oil from emergency reserves in response to the Iran war.

The IEA includes 32-member countries. The 400-million-barrel release means the oil will be available for distribution. It is the largest oil reserve release in history.

“The oil market challenges we are facing are unprecedented in scale, therefore I am very glad that IEA Member countries have responded with an emergency collective action of unprecedented size,” said IEA Executive Director Fatih Birol. “Oil markets are global so the response to major disruptions needs to be global too. Energy security is the founding mandate of the IEA, and I am pleased that IEA Members are showing strong solidarity in taking decisive action together.” IEA members hold emergency stockpiles of more than 1.2 billion barrels, with another 600 million barrels held under government obligation. This is the sixth time the IEA, created in 1974, has coordinated a release. Previous collective actions were taken in 1991, 2005, 2011, and twice in 2022.

Concern about a massive energy crisis has grown since the Iran war began on February 28 with joint U.S.-Israeli strikes targeting Iranian leadership and military assets. Since then, Iran has lashed out at oil and gas infrastructure throughout the Middle East.

Iran has also threatened shipping through the Strait of Hormuz, which connects the Persian Gulf and the Gulf of Oman. About 20 percent of the world’s oil and natural gas supply is exported through the Strait and the war has halted most of it.

Reuters reported Saturday that Kuwait issued a trade notice saying it would cut oil production due to the war and the hazards in the Strait. Qatar’s energy minister Saad al-Kaabi, told the Financial Times that the situation could “bring down the economies of the world.” The IEA noted the impact of the war on oil and natural gas exports.

“The conflict in the Middle East that began on 28 February 2026 has impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products currently at less than 10% of pre-conflict levels. This is forcing operators across the region to shut in or curtail a substantial amount of production,” the IEA stated.