The US is considering easing restrictions on “shadow fleet” tankers linked to Russia and Iran to lower soaring diesel prices ahead of November’s midterm elections. People familiar with the matter told the Financial Times that the moves could include allowing the sale of blacklisted vessels to legitimate operators and lifting sanctions so they can operate without restriction.
Energy Secretary Chris Wright raised the proposal at the World Petroleum Conference in Riyadh, saying a shortage of tankers is a “crucial choke point” that is driving up freight rates and fuel costs. A Treasury official added that the Office of Foreign Assets Control may authorise sales of shadow fleet vessels to “legitimate buyers” on a case‑by‑case basis, restoring them for normal commercial use.
The policy would be a shift toward a more favourable stance toward Moscow as the administration seeks to lower fuel prices before the midterm vote, which could decide control of Congress. Polls show inflation driven by the Iran war is hurting the Republican Party. Critics warn the move could be seen as a “gift to our adversary” and a betrayal of allies.
Analysts note the measure may only have a marginal impact on prices, which remain near $6.53 per gallon, and could complicate US policy toward Russia and Iran.
Source: Financial Times Markets · Summarized by HeadlinesBriefing