US considers easing sanctions on shadow fleet — Jerusalem Post
The administration of US President Donald Trump is considering easing sanctions on vessels of the so-called shadow fleet in order to reduce record-high freight rates for transporting oil and petroleum products. These are tankers that transported cargo from the Russian Federation — the aggressor state — Iran and Venezuela, the Jerusalem Post reports, citing a US official.
Transportation of non-sanctioned oil
According to the publication's source, Washington is discussing an option under which previously sanctioned vessels could transport oil and petroleum products not covered by US sanctions. This would not apply to Russian and Iranian oil, which are subject to restrictive measures.
The aim of the potential decision is to increase supplies of crude oil and petroleum products from the Persian Gulf region. Companies wishing to use such tankers would have to apply to the US Treasury Department for authorization, the official said.
More current news is available on the UA.News Telegram channel Telegram.
High freight rates
According to the research group Energy Aspects, US Energy Secretary Chris Wright said in a video address to the World Petroleum Congress in Riyadh that the administration is discussing easing restrictions on the shadow fleet because of record freight rates. Analysts noted that high transportation costs are limiting demand for US oil.
Tanker freight rates have risen amid the wars in Iran and Russia's aggression against Ukraine. This has also prompted Asian refineries to seek alternative supplies from the Middle East and Latin America.
Energy Aspects believes that easing sanctions is unlikely to significantly reduce freight rates, as most tankers sanctioned over links to Russia or Venezuela continued operating over the past three months. At the same time, the decision could make it possible to deploy a small number of additional vessels for voyages through the Strait of Hormuz between Iran and Oman. Sources in the maritime industry also noted that insurance companies would still be required to comply with European Union and UK rules.
