US extends Russian oil waiver

The US Treasury has once again renewed a sanctions waiver on Russian seaborne oil, a critical policy decision that allows Western service providers to facilitate the transport of Russian crude, provided it adheres to the G7-imposed price cap of $60 per barrel. This ongoing extension ensures that essential shipping, insurance, and financing services remain available for compliant Russian oil sales to third countries. This move is primarily driven by a delicate balancing act to limit Russia's war funding while simultaneously stabilizing global energy markets. The US and its G7 partners aim to reduce the Kremlin revenue from oil exports through the price cap, thereby weakening its financial capacity to sustain the Ukraine War. Concurrently, the waiver prevents a significant supply shock that could send global crude oil prices soaring, exacerbating inflation and hindering global economic stability, particularly for developing nations heavily reliant on consistent energy supplies.