The Trump administration is working to convert sanctioned oil tankers into legitimate commercial vessels to expand global crude-shipping capacity amid disruptions caused by the war in Iran and the effective closure of the Strait of Hormuz, US Energy Secretary Chris Wright said on Oct. 19.
Speaking at a Citadel Securities event in New York, Wright said that the US government is working with investors who plan to buy idle sanctioned tankers, refurbish them and use them to transport oil that is not subject to sanctions.
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“We’re going to move some of the ships from what I call the ‘bad-guy fleet’ to the ‘good-guy fleet,’” Wright said. “They will not carry sanctioned oil anymore.”
Wright said the administration was establishing an approval process to give the vessels legitimate status, rejecting suggestions that Washington was simply lifting sanctions on ships previously used to transport Russian or Iranian oil.
“We are converting dark tankers to legitimate tankers,” he said. “There is no removing of sanctions.”
The initiative could significantly expand the pool of vessels available to transport crude at a time when the conflict in the Middle East has disrupted energy supplies and driven up shipping costs.
Wright estimated that the global fleet of sanctioned tankers, commonly known as the “dark fleet” or “shadow fleet,” numbers about 1,600 vessels. Converting some of them could add dozens or even hundreds of tankers to the legitimate shipping market, he said.
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The conflict has sharply increased the cost and risks of moving oil through the Strait of Hormuz, a critical route for global energy supplies.
Shipping oil from the Persian Gulf to East Asia now costs more than six times as much as before the conflict, according to Bloomberg.
More than 40% of the world’s approximately 850 very large crude carriers are currently in the Persian Gulf or within a few days’ sailing distance, shipping data provider Signal Ocean reported, further tightening the global supply of available tankers.
The administration’s proposal also comes as Republicans face growing voter concerns over fuel prices and affordability ahead of US midterm elections. Gasoline and diesel prices have risen following the escalation of the Middle East conflict.
US seeks Russian diesel supplies as leverage for peace
Wright also defended the administration’s decision to work with Russian President Vladimir Putin to release Russian diesel supplies onto global markets – a controversial move given Moscow’s ongoing war against Ukraine.
He said the arrangement was partly intended to give the Kremlin an economic incentive to end the war.
“If you can produce more diesel than you consume, you can export it to the world,” Wright said, arguing that Russia could increase its exportable surplus by ending the war, reaching an energy ceasefire with Ukraine and repairing its refineries, or reducing diesel consumption by its military.
“If they change their behavior, and all of these are steps towards peace in the conflict, and you have surplus diesel, where you can export it to the world,” he said.
‘Simple victory’ for the Kremlin
Zelensky argued that easing sanctions on Russia without a clear and durable de-escalation agreement would be a sign of weakness that benefits Moscow. “In my view, this is a weak decision,” he said.
“Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged,” Zelensky added.
He also pointed to the EU’s decision to delist two Russian oligarchs – Alisher Usmanov and Mikhail Fridman – both closely connected to Putin and the Kremlin’s war effort.
Since that move, he said, Russian strikes and terror of civilians have only intensified.
In an interview with British broadcaster Piers Morgan last week, Zelensky described the deal as a “simple victory” for the Kremlin.
“It’s a pity that we are losing a strong partner,” Zelensky said.
He also accused Trump of taking Russia’s side in the war, arguing that Washington should remain neutral rather than favor Moscow.
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