U.S. Extends Russian Oil Waiver Through June as Oil Markets Tighten

The U.S. Treasury Department has extended its temporary sanctions wind-down authorization for Russian oil cargoes already at sea, issuing a new general license that keeps qualifying shipments flowing through mid-June as the Strait of Hormuz crisis continues tightening global energy markets.

The Office of Foreign Assets Control (OFAC) on Monday issued Russia-related General License 134C, authorizing transactions necessary for the sale, delivery, or offloading of Russian-origin crude oil and petroleum products loaded onto vessels on or before April 17, 2026. The authorization remains valid through 12:01 a.m. EDT on June 17, 2026. 

The new authorization replaces and supersedes General License 134B, which expired on May 16. 

Importantly, the new license does not materially expand or tighten the previous framework. Instead, it largely rolls over the same authorization structure established under GL 134B while extending the expiration date another 30 days.

The license applies only to Russian crude oil and petroleum products loaded before the April 17 cutoff date and does not authorize new Russian oil trade. 

The authorization also explicitly covers cargoes carried aboard vessels blocked under U.S. sanctions authorities, provided the oil was loaded before the cutoff deadline. 

OFAC said authorized activities include transactions “ordinarily incident and necessary” to complete qualifying voyages, including shipping, insurance, bunkering, vessel management, crewing, piloting, registration, flagging, classification, and salvage services. Emergency repairs, safe anchoring, environmental mitigation, and crew safety operations are also permitted under the authorization. 

The license maintains strict restrictions involving Iran and other sanctioned jurisdictions.

Specifically, GL 134C does not authorize transactions involving persons or entities tied to Iran, North Korea, Cuba, or Russian-occupied regions of Ukraine. It also preserves prohibitions on Iranian-origin goods, services, and dealings involving the Government of Iran outside the limited scope of the authorization. 

The extension confirms the Trump administration is continuing what has effectively become a rolling series of temporary “wind-down” authorizations first introduced in March as disruptions tied to the Strait of Hormuz crisis intensified pressure on global crude supplies.

U.S. Treasury Secretary Scott Bessent publicly previewed the move Sunday, saying the administration was issuing a temporary 30-day license to help “the most vulnerable nations” access Russian oil currently stranded at sea.

The administration has repeatedly framed the policy as a market stabilization measure rather than broad sanctions relief for Moscow. Treasury officials have argued the licenses are intended to allow already-loaded cargoes to clear the market while minimizing further supply disruptions during the Gulf crisis.

The latest extension comes as tanker traffic through the Strait of Hormuz remains sharply below normal levels and energy-import dependent nations continue lobbying Washington for flexibility on Russian crude purchases amid tightening physical oil inventories and rising freight and insurance costs.

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