U.S. Treasury Secretary Scott Bessent [AP=Yonhap News Archive] The U.S. Treasury Department announced on the 18th (local time) that it will issue a 30-day general license allowing certain countries to trade Russian crude oil currently stranded at sea.

Treasury Secretary Scott Bessent stated via his X (formerly Twitter) account on the same day, "The Treasury is issuing a temporary 30-day general license for the most vulnerable countries to temporarily access Russian crude oil currently stranded at sea."

Bessent explained that this measure will help stabilize the physical crude oil market and ensure oil supply to energy-vulnerable countries. He also stated that the department plans to issue specific licenses to these countries as needed.

Bessent added that the measure would "contribute to reallocating existing supply to countries that need it most by limiting China's ability to stockpile cheap oil."

This is interpreted to mean that China has been heavily purchasing and stockpiling Russian and Iranian crude oil, which are subject to U.S. sanctions, at discounted prices. This measure is expected to reduce China's capacity to acquire cheap oil.

The Donald Trump administration had been exploring countermeasures after the outbreak of the Iran War, as concerns over crude oil supply shortages and rising oil prices grew due to Iran's blockade of the Strait of Hormuz, a key global oil transport route.

The U.S. had maintained sanctions restricting third countries from purchasing and trading Iranian and Russian crude oil. However, facing increasing pressure from rising oil prices, it temporarily eased some sanctions in March and April.

This move is interpreted as an additional response to stabilize international oil prices amid a lack of clear progress in negotiations for an end to the Iran War.