Scott Bessent Issues 30-Day Russian Oil License To 'Stabilize' Crude Market, Move Will Reroute Oil To 'Co

Treasury Secretary Scott Bessent, on Monday, issued a 30-day general license on the Russian seaborne oil to stabilize the crude market, which is dealing with supply shortages due to the closure of the Strait of Hormuz. Sanctions Could Stabilize Oil Market In a post on X, Bessent said the license would temporarily allow vulnerable countries to access Russian oil currently stranded at sea. The move would "provide additional flexibility," and would "stabilize the physical crude market." The license would ensure that oil reaches the most energy-vulnerable countries, Bessent added. He also stated it will help redirect "existing supply to countries most in need" by limiting China's ability to "stockpile discounted oil." Bessent said that Treasury officials are working with the nations for more specific licenses as needed. https://x.com/SecScottBessent/status/2056411947982115207?s=20 Supply Shortages The Iran conflict has disrupted Middle East oil production, pushing global oil supply below demand this year. This has raised oil prices. Crude oil (June 2026) futures have spiked about 60% since the war erupted in late February. United States Oil Fund (NYSE: USO), which tracks the WTI futures prices, soared 82% in the same time frame. The closure of the Strait of Hormuz, which carries about 20% of global oil and liquid natural gas (LNG) shipments, has disrupted more than 14 million barrels per day of crude output from global supply. Global inventories declined by another 117 million barrels in April after falling 129 million barrels in March. The International Energy Agency (IEA) calls it "an unprecedented supply shock." Fatih Birol, the head of the IEA, warned that the world is facing the "biggest energy security threat in history." Aramco CEO Amin Nasser warned that global energy markets could face a multi-year disruption if oil shipments through the Strait of Hormuz remain blocked. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.