In order to prevent a further spike in fuel prices, Washington has allowed the sale of oil that is already at sea on tankers (“on the water”). The day before, an exception was also made for India – the US Treasury Department lifted the ban on Russian oil purchases for Indian companies for 30 days in order to stabilize their domestic market.
The head of the ministry, Scott Bessent, emphasized that this was “a forced measure to increase supply on the market, which will not bring long-term financial benefits to Russia,” Delfi reported.
Mitigating measures
The price of Brent crude soared 28% (above $90 a barrel) over the week as fighting in the region prevented tankers from entering the Strait of Hormuz. That’s the biggest weekly rise since the pandemic, since April 2020. Investment bank Goldman Sachs warned that prices could rise above $100 a barrel if the conflict continues.
In an effort to unblock supplies from the region, the Trump administration has laid out a plan to allow the US International Development Finance Corp. to implement a reinsurance program to protect against losses of up to $20 billion for ships crossing the strait.
Bessent, like other officials, expressed confidence that U.S. efforts to defeat Iran will succeed. “Our campaign has been overwhelming,” he said. – They’re trying to create economic chaos, and I don’t think they’re going to succeed,” Bloomberg reports.
Russia to redirect LNG exports from Europe to Asia
Russia could cut off gas supplies to Europe right now amid soaring energy prices caused by the Iran crisis, without waiting for the EU to implement plans to stop importing Russian LNG by the end of 2026 and pipeline gas by Sept. 30, 2027.
Russian Deputy Prime Minister Alexander Novak said on March 6 that he had discussed with domestic energy companies the possibility of redirecting Russian liquefied natural gas (LNG) supplies from Europe to other markets, Interfax news agency and Izvestia newspaper reported.
Novak said Russian companies are considering the possibility of redirecting supplies to markets in the Asia-Pacific region. According to him, negotiations are already underway and in the near future supplies will be redirected from the European market to countries he described as friendly.
“Our companies are considering opportunities, without waiting for further restrictions from Europe, to conclude new long-term contracts with our partners and redirect some gas from Europe to other countries, including India, Thailand, the Philippines and the People’s Republic of China,” Novak said.
