Full Breakdown
US Treasury Lets Russian Oil Sanctions Waiver Expire Amid Energy-Price Debate
5/17/2026, 2:58:03 AM
Expiration of the Russian Oil Waiver
On May 16 2026 the U.S. Treasury let General License 134B, which permitted Russian seaborne crude purchases, lapse after a 30-day extension. No renewal notice appeared on the Treasury website, and a spokesperson declined comment. The waiver had previously enabled India to buy Russian oil stored on tankers.
Background: Iran-War-Driven Energy Measures
The waiver aimed to curb soaring energy prices after Iran closed the Strait of Hormuz, sparking an “Iran war” on 28 February 2026. It was paired with Strategic Petroleum Reserve loans, a Jones Act suspension, and a pause on the 18.4-cent-per-gallon gasoline tax.
Key Actors in the Policy Decision
Key actors include Treasury Secretary Scott Bessent (license non-renewal), President Donald Trump (gasoline-tax pause, pending decision on Chinese sanctions), Senators Jeanne Shaheen (D-NH) and Elizabeth Warren (D-MA) (opposition), Chuck Grassley (R-IA) and Ruben Gallego (D-AZ).
Data on Prices and Purchases
U.S. gasoline averaged $4.50 per gallon, the highest since 2022. Crude hovered at or above $100 per barrel. The waiver spurred Indian imports of Russian oil, though volumes were undisclosed.
Official Statements & Responses
Treasury Secretary Scott Bessent said he would not renew the license; Treasury gave no comment. President Trump reaffirmed gasoline-tax pause and said he would decide on lifting sanctions on Chinese firms buying Iranian oil after talks with President Xi.
Opposition from Democratic Senators
Senators Jeanne Shaheen and Elizabeth Warren urged Treasury not to renew license, saying it “provides revenue to Russia to aid its war in Ukraine” and that “there is no evidence that this license is reducing costs for American families.” They called it “ill-conceived” and said it enables Russia’s assistance to Iran against U.S. service members.
Conflicting Reports & Gaps
The waiver had been justified as a supply-shortage measure, while senators claim it has not lowered U.S. fuel prices; no independent data confirm either claim.
Verbatim Quotes
- “Tonight, when the current license for Russian oil expires, it should not be renewed,” — Jeanne Shaheen, Ranking Member, Senate Foreign Relations Committee
- “With the average price of gas above $4.50 a gallon, there is no evidence that this license is reducing costs for American families burdened by the President’s conflict in the Middle East,” — Elizabeth Warren, Ranking Member, Senate Banking Committee
- “finally end its ill-conceived policy of helping Russia make even more money from President Trump’s reckless war in Iran.” — Jeanne Shaheen and Elizabeth Warren, in their letter to Treasury
- “Continuing to pause these sanctions is a mistake that President Trump must reverse immediately,” — Chuck Grassley (R-IA) and Ruben Gallego (D-AZ), bipartisan senators
Outlook and Next Steps
The Treasury’s decision leaves open sanctions adjustments, including a review of Chinese firms buying Iranian oil. The bipartisan bill moves through Congress, and Iran talks may shape U.S. energy policy. Earlier, Senators Chuck Grassley (R-IA) and Ruben Gallego (D-AZ) introduced legislation to strengthen sanctions law and restore congressional oversight of Russian sanctions.