Diesel, Drones and Donald

The Trump administration has been busy easing sanctions over the past couple of weeks. On 9 October, OFAC issued General License 135. It allows the sale, delivery and import into the US of Russian-origin diesel until 7 April 2027. On 16 October, Trump waived the main measures of the Lindsey O. Graham Sanctioning Russia and Iran Act, which he signed on 18 September. The Act provides for a 500% tariff on Russian goods and up to 100% tariffs on major buyers of Russian oil and gas. Last week, news also emerged that the administration was considering easing shadow fleet sanctions, as covered in last week’s report.

Of the three measures, the Graham Act waiver has no physical impact, as the tariffs were never in force. Easing shadow fleet sanctions could, to an extent, provide some additional tanker capacity, primarily for shuttle runs through Hormuz. The diesel licence sits somewhere in between: it is unlikely to meaningfully ease the global diesel shortage, but it carries a strong political message.

This story was originally published by Breakwave Advisors. Read the full story at Breakwave Advisors →