The US has permitted nations to purchase sanctioned Russian oil and petroleum that is presently loaded on ships at sea to mitigate the economic effects of the US-Israel conflict with Iran.
US Treasury Secretary Scott Bessent stated it was a short-term action to "support stability in global energy markets" amid the conflict. The authorization will remain valid until 11 April.
"This precisely focused, temporary measure pertains solely to oil currently in transit and will not yield substantial financial gains for the Russian government," Bessent stated.
Assaults on vessels and energy facilities in the Gulf, along with the successful blockade of the crucial Strait of Hormuz waterway, have shaken international energy markets.
Oil prices rose above $100 a barrel on Thursday while stock markets dipped after three additional cargo vessels were attacked in the Gulf and Iran's new supreme leader promised to continue obstructing the strait.
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Approximately one-fifth of the globe's oil typically flows through the narrow channel.
Oil prices remained largely stable during Friday morning trading in Asia, with Brent crude falling 0.2 percent to $100.29 (£75.09) a barrel, while US-traded oil decreased by 0.3percent to $95.41.
The increase in energy prices this week has prompted authorities to respond to the situation.
On Wednesday, the International Energy Agency (IEA) announced it would provide a historic 400 million barrels of oil.
Asian governments, significant consumers of Gulf oil, have recently declared a variety of measures.
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For instance, around 95percent of the crude oil in the Philippines is sourced from the Middle East. The president instructed public employees to transition to a four-day workweek to conserve fuel.
In the meantime, Japan, South Korea, and Thailand have declared limits on gasoline prices.
"The short-term rise in oil prices is a brief disruption that will lead to significant long-term advantages for our nation and economy," Bessent stated.
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Previously, he stated that the US government would begin guiding vessels through the Strait of Hormuz "as soon as it can be done militarily".