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How U.S. Sanctions Relief on Oil Affects Energy Supply Chains in Asia

PoliticsHow U.S. Sanctions Relief on Oil Affects Energy Supply Chains in Asia

Recently, the U.S. temporarily eased sanctions on Iranian and Russian oil, allowing allies to import these resources. In response, the government announced its efforts to secure alternative supply routes.

On Tuesday, Ministry of Foreign Affairs spokesperson Park Il stated during a regular briefing that it is closely monitoring special trends related to energy supply. He added that the Ministry is responsible for managing overseas situations within the National Emergency Economic Response System.

Park also mentioned that through the overseas diplomatic missions, it is meticulously monitoring the status of items affected by energy supply chains, such as crude oil and natural gas, emphasizing that they’re actively supporting efforts to secure alternative supply routes.

He further stated that the Ministry will continue to intensify diplomatic efforts to stabilize the energy and raw material supply.

Earlier, on March 22, U.S. Treasury Secretary Scott Bessent mentioned in an NBC interview that to stabilize international oil prices, the U.S. would temporarily ease sanctions on Iranian and Russian oil, allowing Asian allies like Korea and Japan to import these quantities. The plan aims to redirect discounted oil that was headed for China to allied countries to increase supply.

Additionally, the U.S. Treasury had already issued a general license on March 12, allowing transactions for approximately 30 days until April 11 for Russian crude oil and petroleum products that had already been shipped. This move aims to alleviate price pressures following a surge in Brent Crude prices due to tensions in the Middle East.

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