Oil Traders In Talks With US To Get Sanctioned Ships Back To Sea

An Italian military helicopter flies near the oil tanker Toa Payoh, foreground, as the Italian Navy ship Thaon di Revel sails nearby during an inspection by the European Union’s EUNAVFOR MED IRINI mission in international waters west of the Italian island of Pantelleria, August 2, 2026. Handout via REUTERS.

Nov 8, 2026 (Bloomberg) –Oil traders are seeking approval from the US government to use some tankers that were sanctioned for their involvement in shipping illicit oil, in an effort to address a vessel crunch and lower prices.

At least four companies, including Trafigura Group, Vitol Group, Mercuria Energy Group Ltd., and Abu Dhabi National Oil Co. are in discussions with US officials for licenses that would allow them to purchase or lease some ships that are blacklisted by the US government, according to people with knowledge of the matter.

The move comes as the Trump administration tries to lower oil prices that spiked after the US and Israel launched their war on Iran, triggering the worst supply disruption in history. Freight rates, a major component in the final price of oil, surged to a record in recent weeks amid tanker shortages and the risks of sailing through the Strait of Hormuz. Ships have been forced to take on longer voyages to secure supplies and charterers have been forced to cough up higher insurance fees.

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