Oil prices slip to $88 as US extends Russian‑oil waiver, Iran left out

Global crude‑oil prices slid to $88 a barrel on Friday as the U.S. extended its Russian‑oil waiver for another month, excluding Iran.

The move matters because it signals shifting supply dynamics and a U.S. effort to keep Russian oil flowing while tightening the economic squeeze on Tehran. Market participants watch Hormuz traffic closely; any change can ripple through world energy prices.

After Iranian Foreign Minister Hossein Amir‑Abdollahian said the Strait of Hormuz would reopen, benchmark crude fell from $98 to $88 per barrel, a $10 drop that analysts linked to reduced fears of a supply bottleneck ^[1]. The price slide was the sharpest movement in weeks and nudged the market toward a more balanced outlook.

The U.S. announced it would keep the waiver that lets allied nations purchase Russian oil and refined products in place for roughly another month, a policy designed to sustain Russian export revenues while denying Iran any benefit from the deal ^[1]. The extension runs until about mid‑May, according to the Treasury Department, and it continues to exclude Iran and any entities tied to Tehran's oil sector.

Re‑opening the Hormuz waterway eased concerns that a closure could choke a vital oil transit point that handles about a fifth of global seaborne oil. While some reports have suggested that prices rose when Iran closed the strait, the higher‑trust BBC Urdu live feed documented the recent drop, underscoring the market’s sensitivity to navigation status.

Countries that rely on Russian crude, such as India and Turkey, are expected to continue buying under the waiver, keeping Russian export flows steady despite sanctions. At the same time, Iran’s exclusion means Tehran must seek alternative buyers or risk further revenue loss.

Energy analysts warn that any reversal, such as a sudden Hormuz blockage, could quickly reverse the price decline and pressure the waiver’s political calculus. For now, the market appears to be calibrating to a modestly lower price environment while the U.S. maintains its strategic lever over Russian oil sales.

**What this means** The price dip and waiver extension illustrate how geopolitical shifts in a narrow maritime chokepoint can reshape global oil markets. While lower prices benefit consumers, the U.S. policy keeps Russian oil in circulation, limiting the full impact of sanctions, and Iran remains sidelined, facing continued economic pressure.