US considers easing sanctions on shadow fleet vessels to cut freight rates, official says

The Trump administration is considering easing sanctions on shadow fleet vessels that have transported oil from Russia, Iran, and Venezuela to reduce record-high global freight rates, a US official said. The move follows Trump's temporary lifting of sanctions on Russian diesel, which drew criticism from Ukraine and European countries.

The Trump administration is considering easing sanctions on shadow fleet vessels that have transported oil from Russia, Iran, and Venezuela in an effort to reduce record-high global freight rates, a US official said on Wednesday. The discussions come days after President Donald Trump temporarily lifted sanctions on Russian diesel fuel, a move that drew sharp criticism from Ukrainian President Volodymyr Zelenskiy, European countries, and some Republican senators, who called it a gift to Russian President Vladimir Putin that would provide revenue for the war in Ukraine. The new talks center on the US potentially allowing 'legal oil' — crude or petroleum products not sanctioned by Washington — to flow on previously sanctioned vessels, rather than Russian or Iranian oil. The goal is to get more refined products and crude out of the Gulf. US Energy Secretary Chris Wright said the administration was discussing easing sanctions on shadow fleet vessels to cut record freight rates that have reduced demand for US crude. Companies would need Treasury Department approval. Tanker freight rates have soared to record highs as wars in Iran and Ukraine have stoked inflation and put US crude out of reach for Asian refiners. Energy Aspects said easing sanctions would not greatly impact rates but could allow more Middle East oil movement. High fuel prices are a risk for Trump in the November 3 midterm elections.