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      US Considers Easing Sanctions on Shadow Fleet Tankers to Lower Freight Rates

      The Trump administration is exploring the possibility of easing sanctions on shadow fleet tankers to address soaring global freight rates, a US official confirmed. This initiative aims to allow non-sanctioned oil to be transported on previously sanctioned vessels, which have been used to carry oil from countries like Russia, Iran, and Venezuela. The goal is to increase the availability of crude and refined products from the Gulf region, with companies needing to apply to the US Treasury for permission to utilize these vessels.

      US Energy Secretary Chris Wright mentioned the discussions during a video message at the World Petroleum Congress in Riyadh, Saudi Arabia. The administration's focus on reducing freight costs comes as high prices have negatively impacted demand for US crude oil, particularly ahead of the midterm elections on November 3. However, analysts from Energy Aspects have indicated that the actual impact on freight rates may be minimal, as many of the aging tankers have already been in operation recently.

      The potential easing of sanctions follows President Trump's temporary lifting of restrictions on Russian diesel until April 7, a move that has faced criticism from various stakeholders, including Ukrainian President Volodymyr Zelenskiy and some Republican senators. They argue that such actions could inadvertently bolster Russia's revenue amid its ongoing conflict in Ukraine. Maritime industry sources have also pointed out that existing EU and UK regulations binding ship insurers could further limit the effectiveness of any sanctions relief.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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