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By Peter Aitken
Politics Weekend Editor
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Treasury Secretary Scott Bessent on Friday said that the U.S. could further relieve Russian sanctions as gas and oil prices soar following Iran's decision to shut off shipping access through the Strait of Hormuz.
Discussing India's need to cover a gap in its oil supply, Bessent told FOX Business host Larry Kudlow: "We have given them permission to accept the Russian oil. We may unsanction other Russian oil."
The White House in response to a Newsweek request for comment referred to the Treasury secretary's comments.
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Why It Matters
India had committed to not buy Russia's oil as the U.S. attempted to apply pressure on Moscow to end its invasion of Ukraine. The U.S., in turn, planned to lower tariffs on Indian goods to 18 percent from 25 percent. Previously, India had increased its consumption of Russian oil, which had dropped in price as Western nations switched to alternative supplies to isolate and sanction Russia for its invasion.
Iran, however, closed the Strait of Hormuz in retaliation for U.S.-Israeli joint strikes, which killed Ayatollah Ali Khamenei. The closure has tilted the oil and gas markets, with supplies now strained and nations scrambling to determine a backup plan: Iraq's Ministry of Oil said Tuesday that it would stop production in a key oil field because of disruptions in the Strait of Hormuz.
The closure has also caused crude oil prices to surge worldwide, with Brent crude hitting $92 a barrel. President Donald Trump, on Friday, addressing concerns over a consequent rise in gas prices, said: "If they rise, they rise."
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What To Know
The U.S. provided India with a 30-day waiver to buy Russia's oil, which is currently stranded at sea, in order to ease the demand on global oil supplies.
Bessent had described the waiver as a "deliberate short-term measure" to keep the global market from feeling further strain as supplies of oil and gas remain stranded on tankers near the Strait of Hormuz. Iran has threatened to attack any vessels attempting to pass through the narrow chokepoint.
The BBC reported that millions of barrels are believed to be stranded on those tankers, and nearly half of India's crude oil and gas imports transit through the Strait.
Bessent, during his appearance on FOX Business, said: "The Indians had been very good actors. We had asked them to stop buying sanctioned Russian oil this fall: They did."
"They were going to substitute it with U.S. oil, but to ease the temporary gap of oil around the world, we have given them permission to accept the Russian oil," Bessent said. "We may unsanction other Russian oil.
"The other thing Treasury can do here, Larry, is there are hundreds of millions of sanctioned barrels of sanctioned crude on the water, and, in essence, by unsanctioning them, Treasury can create supply, and we are looking at that," Bessent added. "We're going to keep a cadence of announcing measures to bring relief to the market during this conflict."
Update 3/6/26, 8:37 p.m. ET: This article has been updated with additional information.
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