Trump administration extends sanctions exemption on some Russian oil as gas prices continue to skyrocket

The Trump administration extended sanctions exemption Friday on some Russian oil as gas prices continue to skyrocket in the wake of the US-Israeli war against Iran, according to The New York Times (NYT).

The move comes two days after Treasury Secretary Scott Bessent announced that the US would not extend the exemption on the sale of Russian oil.

Gas prices have skyrocketed since the war in the Middle East began in late February, with the average price in the US surging by over 30% to more than $4 per gallon for regular unleaded gasoline and more than 40% to surpass $5 for diesel, according to the American Automobile Association (AAA).

The Trump administration initially loosened restrictions on Russian oil exports that were stranded at sea after the war rattled energy markets, with the goal of lowering oil prices by allowing countries to legally purchase hundreds of millions of barrels of crude that the US had blacklisted, according to the NYT report.

As the war has extended into its second month, and with gas prices in the US continuing to surge, the initial sanctions waiver on Russian oil that expired April 11 will now be extended until May 16.

The NYT said the last-minute renewal of Russia’s sanctions exemption came as Iran announced Friday that the Strait of Hormuz, a vital waterway that carried 20% of the world’s oil, was completely open to all commercial ships.

President Donald Trump celebrated the move by claiming in a social media post that the “Hormuz Strait situation is over” and Iran agreed to never close the waterway again.

Iran, however, has made no such commitment. Foreign Minister Seyed Abbas Araghchi said that the waterway would be open “for the remaining period of cease-fire” between the US and Iran, which is set to expire next week. American and Iranian negotiators are expected to meet for another round of peace talks in Pakistan before the ceasefire ends.

Democratic lawmakers in the US Senate condemned Trump’s extension of the sanctions exemption, with Jeanne Shaheen, the ranking member of the Senate Foreign Relations Committee, and top Democratic members of the chamber, Chuck Schumer and Elizabeth Warren, issuing a rebuke.

“This decision is shameful and a 180-degree reversal from Secretary Bessent, just two days after he pledged not to extend sanctions relief for Russia,” they said in a statement. “This week, Russian President Vladimir Putin launched the largest aerial attack of the year so far on Ukraine, killing 18, and the administration’s response is to relax sanctions on the Kremlin yet again. What kind of message does this move send?”

While Trump has downplayed skyrocketing gas prices and economic repercussions of the war against Iran, the Democratic senators pointed out that the president’s move to extend the sanctions exemption benefits Russia the most.

“Make no mistake, Putin has been one of the biggest beneficiaries of President Trump’s war against Iran, as Russia saw oil revenues nearly double in March,” they said. “Enough is enough. President Trump needs to stop letting Putin play him for a fool and impose additional sanctions on Putin, who is clearly not feeling sufficient pressure from this president.

“If President Trump does not change course, the war in Ukraine will continue and more innocent people will die,” they added.