The Trump administration is considering easing sanctions on so-called shadow fleet vessels that have carried oil and petroleum products from countries including Russia, Iran and Venezuela, a US official said, in an effort to reduce record-high global freight rates. The talks matter because they target the same tanker squeeze that has pushed some spot segments into million-dollar territory for the first time in history — and because the market has already voted on how much relief it expects.
Under the discussions, the United States would potentially allow "legal oil" to flow on previously sanctioned vessels, according to the official. That means crude or petroleum products not sanctioned by Washington, rather than Russian and Iranian oil, which remain under punitive measures. The stated goal is to get more refined products and crude out of the Gulf.
Companies seeking to use the sanctioned vessels would have to apply to the US Treasury Department for permission, the official said. No formal easing has yet been announced.
What Washington is actually proposing
The measure under discussion is narrower than a blanket lifting of sanctions. Ships that were previously sanctioned would be granted permission to carry "legal oil" — crude and products not subject to US restrictions — while Russian and Iranian cargoes stay excluded. Washington sees the possibility as a way to increase shipments from the Persian Gulf, where tensions and limited shipping capacity keep costs high.