The temporary licence was granted as benchmark Brent crude traded around $101 per barrel by 1000 GMT, reflecting continued volatility in energy markets despite Washington’s move. Oil prices have surged nearly 40% since the start of the conflict, driven by fears that escalating hostilities could disrupt global supplies.

Financial markets in Asia also came under pressure as traders weighed the risks of prolonged instability in the Middle East, a region that remains central to global energy production and transportation.

Oil prices jumped about 9% to around $100 a barrel on Thursday as concerns intensified over the durability of supply chains during the ongoing conflict. Traders have been particularly focused on the security of the Strait of Hormuz, the narrow maritime corridor through which roughly one-fifth of the world’s oil supply passes.

Iran has attacked vessels in the strategic waterway during the current confrontation, heightening fears that further disruptions could ripple across global energy markets.

The waiver issued by Washington allows countries to buy Russian petroleum cargoes already at sea, where shipments frequently change ownership during transit. The measure is intended to increase short-term supply availability and reduce upward pressure on prices.

“The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long term,” said Scott Bessent, the U.S. Treasury secretary.

The energy market turbulence comes as the conflict between Israel and Iran entered its third week with continued missile exchanges.

Iran launched another barrage of missiles and drones toward Israel on Friday, while the Israeli military said it conducted air strikes across Tehran and continued operations against the Iranian-aligned Hezbollah militia in Lebanon, including strikes around the capital, Beirut.

Iranian media reported that rallies marking Quds Day began across Iran in support of Palestinians. Residents in Tehran and the nearby city of Karaj reported hearing explosions and fighter jets during Israeli strikes, according to local media coverage.

Energy traders have closely followed comments by Donald Trump regarding the likely duration of the conflict, which has added to volatility in oil markets and global equities.

The sharp rise in crude prices has contributed to declines in U.S. stocks and broader market unease as investors assess the potential for prolonged disruptions to energy flows.

The waiver allowing limited Russian oil transactions reflects Washington’s attempt to cushion global markets while the conflict continues to unfold across the region.

Georgieva delivered the remarks at a symposium hosted by Japan Ministry of Finance in Tokyo, where she said the conflict was once again testing the resilience of the global economy.

Georgieva said higher energy costs triggered by the regional conflict could have broad economic implications if oil prices remain elevated for an extended period.

According to her estimate, a persistent 10% rise in oil prices would translate into roughly a 0.4 percentage point increase in global inflation.Her comments underscore concerns among policymakers that geopolitical tensions in the Middle East could disrupt energy markets and complicate efforts by central banks to bring inflation under control.

Addressing officials and economists at the Tokyo symposium, Georgieva urged governments and central banks to prepare for heightened uncertainty in the global economy.

“My advice to policymakers in this new global environment is think of the unthinkable and prepare for it,” she said, referring to the potential economic shocks stemming from geopolitical instability.

Georgieva added that the latest Middle East conflict was placing additional strain on an already fragile global recovery, highlighting the need for policymakers to remain vigilant as risks to growth and price stability evolve.