The US is contemplating easing sanctions on shadow fleet tankers linked to Russia, Iran, and Venezuela due to soaring global tanker freight rates.
The administration of U.S. President Donald Trump is considering the option of easing restrictions on shadow fleet tankers that are on the sanctions list and used for oil transportation linked to Russia, Iran, and Venezuela, following a record rise in global tanker freight rates.
According to a Reuters report dated October 15, a U.S. official stated that the Washington administration is working on allowing previously sanctioned tankers to transport crude oil and petroleum products that are not subject to U.S. sanctions.
Special permits for sanctioned tankers are on the agenda.
Under the proposed regulation, tankers on the sanctions list will not be allowed to transport oil subject to sanctions from Russia or Iran. Instead, it is being considered that these vessels could be used for the transportation of oil and petroleum products that fall outside the scope of sanctions.
The U.S. official indicated that companies wishing to use these tankers would need to apply to the U.S. Department of the Treasury.
It was stated that the primary aim of the regulation is to increase shipments of crude oil and refined petroleum products from the Gulf region.
Record freight rates are affecting oil trade.
Due to the impacts of the wars in Iran and Ukraine on maritime transportation, tanker freight rates have reached record levels.
The rising transportation costs have made U.S. crude oil more expensive for refineries in Asia, leading some buyers to turn to sources in the Middle East and Latin America.
In a video message sent by U.S. Energy Secretary Chris Wright to the World Petroleum Congress held in Riyadh, he also mentioned the option of easing sanctions on shadow fleet tankers.
According to the energy market research organization Energy Aspects, Wright pointed out that high freight rates are negatively affecting demand for U.S. oil.
Insurance restrictions continue.
Energy Aspects reported that easing sanctions on shadow fleet tankers may not lead to a significant drop in freight prices.
The organization noted that a significant portion of the tankers under sanctions are old and in poor maintenance condition, and that many vessels subject to sanctions related to Russia and Venezuela have continued their commercial activities in the last three months.
The analysis indicated that the potential regulation could allow a limited number of additional tankers to be used for some short-distance oil transports around the Strait of Hormuz.
Maritime sector sources reported that due to the ongoing sanctions by the European Union and the United Kingdom on marine insurance, the potential decision by the U.S. may have a limited impact on freight prices.
Discussions regarding Russian oil continue.
The U.S. administration's new assessment comes after the temporary lifting of sanctions on Russian diesel fuel.
This decision has been criticized by Ukrainian President Volodymyr Zelensky, European countries, and some Republican U.S. senators.
The U.S. Department of Energy stated that the potential easing of sanctions on shadow fleet tankers would not assist in the transportation of Russian oil or petroleum products.
The White House did not respond to Reuters' request for comment on the matter at the time the news was published.
No definitive decision regarding the easing of sanctions has been announced yet.
Source: SeaNews Türkiye
