US weighs lifting sanctions on some shadow fleet tankers to lower freight costs

The Trump administration is considering lifting sanctions on some shadow fleet vessels that have transported oil from Russia, Iran, and Venezuela to reduce record-high global freight rates, a US official said Wednesday. The discussions follow President Trump's temporary lifting of sanctions on Russian diesel fuel, which drew criticism from Ukrainian President Zelenskiy, European countries, and US senators. Companies buying sanctioned vessels would need Treasury Department approval, with sanctions removed on a case-by-case basis. Energy Secretary Chris Wright said easing sanctions aims to lower freight rates hurting US crude demand, though analysts expect minimal impact on rates. Most sanctioned tankers remain active, and ship insurers still face EU and UK regulations. High fuel prices are a concern ahead of November midterm elections.