Oil drops after U.S. opens window for Russian oil purchases

March 13, 2026 (MLN): Global oil prices slipped on Friday morning after the United States allowed countries a temporary window to purchase Russian oil that is currently stranded at sea, offering short-term relief to energy markets rattled by the escalating conflict involving Iran.

Currently, Brent crude futures went down by $2.05, or 2.08%, to $100.76 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures increased by $0.05, or 0.05%, to $95.78 per barrel by [09:50 am] PST.

The U.S. Treasury granted a 30-day license permitting nations to buy Russian crude and petroleum products that were already loaded on vessels but unable to reach buyers due to sanctions and logistical disruptions.

The decision was aimed at easing immediate supply tightness in the global market.

U.S. Treasury Secretary Scott Bessent said the measure was intended to calm volatility in energy markets that have been destabilized by the ongoing war involving Iran, as reported by Reuters. 

The latest policy decision followed another major intervention from Washington. The U.S. Department of Energy declared that the United States would release 172 million barrels of crude oil from the Strategic Petroleum Reserve to counter the sharp rise in oil prices triggered by the conflict.

The move was coordinated with the International Energy Agency, which agreed to a record release of 400m barrels from strategic stockpiles among member countries. The U.S. contribution forms a significant share of that coordinated effort.

Despite the massive planned release, the impact on prices could be short-lived as geopolitical tensions in the Middle East continue to intensify.

Benchmark crude prices surged more than 9% on Thursday, reaching their highest levels since August 2022 as investors reacted to escalating security threats around key oil shipping routes.

Iran’s newly installed supreme leader, Mojtaba Khamenei, signaled that Tehran intends to continue the confrontation and maintain pressure on the United States and Israel by keeping the Strait of Hormuz closed.

Security concerns intensified further after two fuel tankers in Iraqi waters were reportedly struck by explosive-laden boats believed to be linked to Iran. Iraqi security officials said the attacks forced the country’s oil ports to halt operations completely.

Meanwhile, the Sultanate of Oman took precautionary measures by relocating vessels away from its main export terminal at Mina Al Fahal, located near the Strait of Hormuz.

In response to rising risks, governments and energy producers are exploring alternative routes to keep global oil supplies moving.

Secretary Bessent said the U.S. Navy could potentially escort commercial vessels through the Strait of Hormuz if conditions permit, possibly alongside an international maritime coalition.

At the same time, Saudi Arabia is reportedly redirecting oil shipments through the Red Sea using its East-West pipeline, allowing crude to bypass the Strait of Hormuz and reach international markets.

Despite tensions, limited shipping activity continues. Iran is reportedly allowing one or two oil tankers per day to pass through the strait, mainly destined for China, ensuring continued revenue flows while maintaining strategic ties with Beijing.

While emergency oil releases and temporary licensing measures have helped ease some supply fears,the stability of global oil markets ultimately depends on whether safe navigation through the Strait of Hormuz can be restored.

With geopolitical tensions still high and shipping risks escalating, energy markets are likely to remain volatile in the coming weeks.

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