The waiver replaces a previous 30-day authorization that expired on April 11 and permits transactions involving Russian crude and petroleum products already loaded at sea, while continuing to exclude dealings tied to Iran, Cuba and North Korea.

The move follows pressure from energy-importing countries, particularly in Asia, grappling with supply disruptions and elevated costs.A Treasury spokesperson said the decision was linked to broader efforts to stabilize markets as diplomatic engagement with Iran intensifies. “As negotiations with Iran accelerate, Treasury wants to ensure oil is available to those who need it,” the spokesperson said.

The extension marks a reversal from comments made earlier in the week by Treasury Secretary Scott Bessent, who had indicated the administration would not renew waivers covering Russian and Iranian oil. The Iranian waiver, issued on March 20, had facilitated the flow of roughly 140 million barrels into global markets, according to Bessent’s prior statements.

Global oil prices fell about 9% on Friday to around $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a critical transit route for global crude supplies. However, the conflict now entering its eighth week has already caused extensive disruption, with more than 80 oil and gas facilities in the Middle East reported damaged, according to the International Energy Agency.

Tehran has warned it could again close the strait if U.S. naval actions targeting Iranian ports continue, raising the risk of renewed supply shocks. The war has been described by the agency as the most severe disruption to global energy supply in history.

The administration’s decision also reflects domestic political pressures, as elevated fuel prices pose risks to Republican candidates ahead of the November midterm elections. U.S. officials said the issue was raised during meetings on the sidelines of G20, World Bank and International Monetary Fund gatherings in Washington, where partner countries urged continued flexibility on supply.

Trump also discussed oil markets during a recent call with Narendra Modi, whose country remains a major importer of Russian crude.The waiver has drawn criticism from lawmakers across party lines, who argue it risks undermining sanctions aimed at curbing Russia’s revenue from its war in Ukraine while also easing pressure on Iran during its confrontation with the United States.

European officials have voiced similar concerns, with Ursula von der Leyen stating that sanctions relief would be premature.Russian presidential envoy Kirill Dmitriev said the policy signaled ongoing economic and energy engagement between Washington and Moscow, adding that earlier waivers could release volumes equivalent to nearly a day of global oil output.

Analysts said the measure underscores the limited policy options available to policymakers confronting simultaneous geopolitical crises and market instability. Brett Erickson of Obsidian Risk Advisers said the damage to global energy systems may be enduring, warning that “the tools available to stabilize them are nearly exhausted.”

The region, which imports more than 80% of crude shipments passing through the Strait of Hormuz, has been hit hard after disruptions linked to Iran’s actions since the conflict began on Feb. 28, tightening global supply and pushing policymakers to consider demand-curbing steps.

No country has formally reinstated remote work mandates, but officials say such measures are under active review. South Korea’s Energy Minister Kim Sung-whan said authorities would consult relevant ministries on expanding work-from-home policies, aligning with recommendations from the International Energy Agency.

IEA Executive Director Fatih Birol reiterated calls this week for reduced travel and remote work, citing earlier precedents such as Europe’s response to the Russian invasion of Ukraine, where demand management helped offset supply disruptions.

South Korea has also launched a public campaign encouraging households to cut energy use, including reducing shower times and shifting electricity consumption to off-peak periods.

Across the region, governments have begun implementing targeted measures to stretch limited fuel supplies. The Philippines has shortened the work week for some public offices, with President Ferdinand Marcos Jr declaring a national energy emergency over risks to supply.

Pakistan has temporarily closed schools and expanded remote work for office staff, while Sri Lanka introduced a weekly public holiday to conserve fuel.Other economies are focusing on efficiency measures rather than mobility restrictions.

Singapore has urged businesses and households to adopt energy-efficient appliances, increase air-conditioning temperatures and accelerate electric vehicle usage.

In Thailand, Prime Minister Anutin Charnvirakul has ordered civil servants to limit overseas travel, adjust office cooling levels above 25°C and adopt remote work where possible.

The policy responses echo pandemic-era strategies aimed at reducing energy demand, as governments across Asia attempt to cushion the economic and supply shocks stemming from the ongoing conflict.