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The United States has extended a 30-day license allowing certain transactions related to Russian oil to proceed. This decision is primarily driven by the growing frustration among American voters regarding the high costs of petrol and diesel. According to reports, the waiver aims to mitigate domestic energy inflation by ensuring continued availability of supply in the global market.
This extension occurs against a backdrop of persistent inflationary pressure, with US CPI data from May 12, 2026, showing an annual inflation rate of 3.8%, higher than the forecasted 3.7%. Per market data, API crude oil stocks also showed a decline of 2.188 million barrels on May 12, 2026, suggesting a tightening physical market that the US administration is keen to offset to prevent further retail price spikes.
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Sign InTraders should watch for the impact on energy benchmarks following this waiver, as core inflation remained sticky at 2.8% as of the May 12, 2026 close. Key catalysts to monitor include upcoming energy inventory reports and Federal Reserve commentary to gauge the broader impact on consumer sentiment. The market will also focus on whether this 30-day window will be further extended depending on fuel price stability.
Update: The Trump administration issued a second 30-day extension of the waiver on May 18, 2026, maintaining a vital lifeline of Russian crude flows to Indian refiners. This measure, originally introduced on March 12 as an emergency response to the Strait of Hormuz blockage, continues to serve as a strategic tool to manage global supply shortages and price volatility.