US Weighs Easing Shadow Fleet Sanctions to Cut Freight Rates

US Reviewing Sanctions on Select Tankers

The United States is weighing a plan to lift sanctions on certain previously sanctioned tankers, allowing them to carry oil and petroleum products not currently restricted under US sanctions. The plan would not permit these vessels to transport Russian or Iranian oil, which remains under US restrictions.

The discussions come as tanker freight rates have climbed to record levels amid wars involving Iran and Ukraine. Higher shipping costs have made US crude more expensive for Asian refiners, prompting some buyers to seek supplies from the Middle East and Latin America instead.

Treasury Approval Required

Companies seeking to purchase sanctioned tankers would need approval from the US Treasury Department. An official said the Treasury reviews each case individually before removing sanctions, and its Office of Foreign Assets Control may approve a sale and lift sanctions if a legitimate buyer intends to return a vessel to commercial use.

US Energy Secretary Chris Wright reportedly addressed the possibility of easing shadow fleet sanctions at the World Petroleum Congress in Riyadh, according to research group Energy Aspects, though a full recording or transcript was not available. The US Department of Energy said that easing sanctions on these vessels would not help Russia move oil or petroleum products.

The talks follow President Trump’s earlier decision to temporarily suspend sanctions on Russian diesel fuel, a move criticized by Ukrainian President Volodymyr Zelenskiy, several European countries, and some Republican senators over concerns it could benefit Russian President Vladimir Putin’s war funding. That suspension is set to last until April 7.

Limited Expected Impact

Energy Aspects said lifting sanctions on some shadow fleet tankers is unlikely to meaningfully reduce global freight rates, though it could help move more oil through the Middle East. The group noted that many of these tankers are old and poorly maintained, and unlikely to add significant capacity to the main commercial fleet in the near term. It also observed that most tankers sanctioned over Russia or Venezuela links had continued trading over the prior three months.

Easing restrictions could make a small number of additional tankers available for shuttle trips through the Strait of Hormuz. However, maritime industry sources noted that insurers would still need to comply with European Union and UK regulations regardless of any US sanctions changes, which could limit the practical effect.

No final decision has been announced. The Treasury is expected to review any applications on a case-by-case basis.

Apeks view — Sanctions relief for individual tankers hinges on case-by-case Treasury review, not a blanket fleet change — and that distinction matters operationally. Energy Aspects’ point that many of these vessels are older and poorly maintained is the real signal for technical managers: any tanker re-entering mainstream trade needs its condition and compliance history properly verified before counterparties, insurers, or charterers treat it as a normal commercial asset again. Paperwork approval is not the same as seaworthiness confirmed.