US Treasury Secretary Scott Bessent announced temporary easing of Russian oil sanctions to stabilize global energy prices, focusing on stranded cargo at sea. The move aims to limit Russia’s revenue from extraction taxes while avoiding further market volatility. Brent crude rose 0.8% to $101.23 a barrel in Asia trading, reflecting easing tensions but lingering supply concerns.

The temporary measure applies to oil tankers blocked by Western sanctions, with Bessent urging an international coalition to secure shipping routes like the Strait of Hormuz once feasible. Iran’s new leader, Mojtaba Khamenei, vowed to block the strait and target US bases, complicating efforts. Meanwhile, Israeli Prime Minister Benjamin Netanyahu threatened Tehran’s leadership, escalating regional tensions.

Markets reacted mixedly: Chinese stocks held steady, while equities in Japan, Hong Kong, South Korea, and the US dipped. The sanctions shift underscores how Middle East conflicts disrupt energy markets and inflation forecasts. Investors now monitor OPEC+ output and geopolitical risks.

This adjustment signals a pragmatic U.S. approach to energy stability amid global supply shocks. However, long-term sanctions remain in place, with the U.S. insisting the measure won’t ease pressure on Russia’s economy.