US Weighs Easing Shadow-Fleet Sanctions to Curb Diesel Surge Before Midterms
The United States is considering easing sanctions on tankers belonging to the so-called “shadow fleet” linked to Russia and Iran. As diesel prices and ocean freight costs have surged due to the U.S.-Iran war, Washington is looking at putting even previously sanctioned vessels back into the international shipping market.
US-Iran War Disrupts Maritime Transport
The Middle East war has disrupted maritime transport of crude and oil products, sending tanker rates higher and pushing up fuel prices in the United States. The International Energy Agency (IEA) warned that the global diesel shortage could persist until mid-2027.
Diesel Prices Reach Record High
As of the 15th, local time, the average diesel retail price in the United States was $6.31 per gallon, near the recent record high of $6.53. U.S. consumer prices rose 3.7% in September. The Trump administration is pursuing various measures to lower diesel prices.
Review of Easing Sanctions on Shadow Fleet
The review of easing sanctions on the shadow fleet is seen as an extension of measures to expand fuel supply and transport capacity to curb price increases. A U.S. Treasury official said the Office of Foreign Assets Control (OFAC) can review, on a case-by-case basis, a license for the transaction and the lifting of sanctions when a legitimate buyer seeks to acquire a sanctioned tanker for normal commercial operations.
Experts Say Easing Sanctions Will Have Limited Impact
Bob McNally, head of Rapidan Energy and a former energy adviser in the George W. Bush administration, told the FT, “The Trump administration is reviewing every possible option to lower fuel prices ahead of the midterm elections,” adding, “It is even looking at policies whose actual impact may be limited.”
Original Article: US weighs easing shadow-fleet sanctions to curb diesel surge before midterms – CHOSUNBIZ — Chosun