Trump ‘could ease sanctions on Russian shadow fleet’ in desperate bid to reduce diesel prices

The Trump administration is weighing whether to ease sanctions on tankers tied to Russia and Iran, a move aimed at pulling down diesel costs before the November midterm elections. A Treasury official told the FT that blacklisted ships could be sold to legitimate operators and delisted so they can trade globally, with each case judged individually. The official said the aim would be to take those vessels out of the shadow fleet, not to help it. Energy Secretary Chris Wright raised the idea earlier in the week, citing record freight rates that have weakened demand for American crude, according to The Independent.

Analysts doubt it would help much. Energy Aspects noted that most sanctioned tankers are old, that most of the sanctioned capacity falls under Iran sanctions, and that many ships penalized over Russian or Venezuelan ties kept sailing anyway. Britain says it has sanctioned over 500 suspected vessels and estimates roughly three-quarters of Russia's crude output moves on them.

Diesel has climbed 70% since the war with Iran began on February 28, and AAA put the average at $6. 28 a gallon on Thursday. Trump also briefly lifted sanctions on Russian diesel exports last week, which strained relations with Ukraine.

Summarized by PolitiKool from The Independent’s reporting. Read the full story at The Independent →