The US has issued a 30-day waiver for countries to start procuring Russian oil as the Iran-Israel war has inflated gas prices. The ease of sanctions comes when the global market is reeling under pressure, as crude prices went back to $101. This led to global stock markets crashing this week, erasing most of the gains they delivered this year.
The waiver to buy Russian oil would come as a breather, as the financial markets are strained with supply shortages. The relaxation of sanctions on Russia will also help the country get the necessary boost to strengthen its economy. The sanctions have been in place since February 2022 after they invaded their neighboring Ukraine.
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Russian Oil Procurement Gets 30-Day Weaver
In the desperate attempt to stabilize prices, Russian oil and other petroleum products get a temporary relief. However, the Trump administration has been repeatedly claiming that rising crude prices are beneficial to the US.
“The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money,” he said on Truth Social. Even Treasury Secretary Scott Bessent joined in on the bandwagon, explaining how the US benefits from the price rise.
“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,” he said. The Trump administration is pushing the narrative that rising prices help the American economy.
However, while there is truth to their claims, the benefit only comes to oil refiners and energy companies. The common man faces the brunt of the price rise, while corporations and industries take the cut. The development highlights how the machinery makes more money during times of crisis, while the common people have to bite their teeth.