U.S. President Donald Trump said Monday that Washington will waive some oil-related sanctions in an effort to boost global supply and reduce prices, as the war involving Iran continues to disrupt energy markets.
The conflict, triggered by U.S.–Israel strikes on Iran and Tehran’s retaliatory attacks across the Gulf region, has severely disrupted shipping through the Strait of Hormuz, a key route that normally carries about 20% of the world’s oil supply.
“We’re also waiving certain oil-related sanctions to reduce prices,” Trump told reporters after holding talks with Russian President Vladimir Putin. He added that some sanctions on unspecified countries could be temporarily lifted until the situation stabilises, though he did not provide further details.
Trump suggested the measures could remain in place if the conflict ends sooner than expected, adding that the United States is prepared to escort oil tankers through the Strait of Hormuz to maintain supply flows.
The remarks came after discussions with Putin, whose country is one of the world’s largest oil exporters. China, another key player mentioned by Trump, is both a major oil importer and a leading trading partner of Russia.
Energy markets reacted sharply to Trump’s comments. Oil prices fell and equities rallied after a volatile trading session, as investors interpreted the remarks as a sign that the conflict may ease sooner than anticipated.
Earlier, U.S. Treasury Secretary Scott Bessent said Washington was also considering easing restrictions on additional Russian oil shipments. The U.S. recently authorised India to purchase Russian crude temporarily, allowing cargoes currently stranded at sea to be sold until April 3, 2026.
Analysts say rising oil prices are creating pressure on the U.S. administration as higher fuel costs risk affecting American consumers ahead of the November midterm elections.
Easing sanctions on Russian oil could help stabilise global supply, but it also presents a challenge for Washington as it continues to pressure Moscow over its ongoing war in Ukraine.
Meanwhile, soaring oil prices have prompted concern across Asia. South Korea has activated a $68 billion market stabilisation fund, while Japan is considering tapping strategic oil reserves. Reports of fuel shortages and long petrol station queues have also emerged in parts of Southeast Asia.
Experts note that supply disruptions linked to the Iran conflict and the earlier removal of Venezuelan leader Nicolás Maduro have reduced access to discounted crude from those countries, potentially strengthening Russia’s position as a key oil supplier, particularly to China.