Decline in Russian oil and Iranian oil revenues, US Treasury point

New York: The US-led price cap on Russian oil exports has “significantly” reduced oil sales revenue for Russia, US Treasury Secretary Janet Wednesday Yellen said in a statement. She also returned to the increase in Iranian oil exports and the possibility of strengthening sanctions after the situation in Israel.

The capping of Russian oil prices, organized by the G7 under the auspices of the United States, has had a significant impact on revenues from oil sales in Russia, according to Janet Yellen, US Treasury Secretary.

G7 capping Russian oil prices has “significantly reduced Russia’s revenues over the past ten months, while promoting stability in the energy markets“, Mrs. Yellen, quoted by Reuters, said during a press conference held as part of the IMF and World Bank meetings in Morocco.

Ceiling of 60 dollars per barrel, established by the G7 and the EU for Russian oil, conditions deliveries to third countries on the possibility of obtaining Western insurance and financing, provided that prices remain below this threshold. This measure came into force at the end of 2022, when the EU introduced an embargo on the import of Russian crude oil.

“We must continue to impose serious and increasing costs on Russia and continue our efforts to make Russia pay for the damage it has caused“, Mrs. Yellen said today.

Furthermore, it is claimed that US sanctions on Iranian oil exports have not been eased, despite a recent increase in Iranian oil exports, particularly to China, due to less strict enforcement of US sanctions.

Warren Patterson, head of commodity strategy at ING, noted that while the United States may take a more flexible approach in response to rising energy prices, that position could change quickly if Iran were to become embroiled in international conflicts, particularly those involving Hamas and Israel.