US moves to bring sanctioned 'shadow fleet' tankers back into legal oil trade
The Trump administration is working with investors to buy and refurbish sanctioned oil tankers so they can transport non-sanctioned crude, US Energy Secretary Chris Wright said on October 19, according to Bloomberg.
Speaking at a Citadel Securities event in New York, Wright said the administration was pursuing an approval process to return some vessels from the global "shadow fleet" to legitimate oil transportation.
"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."
He stressed that the initiative did not amount to lifting sanctions on Russian or Iranian oil.
Wright estimated that the global shadow fleet includes approximately 1,600 sanctioned tankers. The initiative could eventually bring dozens or even hundreds of vessels into legitimate service.
The move comes as the war in Iran and the effective closure of the Strait of Hormuz have disrupted global oil shipments and driven up transportation costs. Rising gasoline and diesel prices have also become a political concern for Republicans ahead of the US midterm elections.
Wright also defended the administration's controversial decision to allow Russian diesel into global markets, arguing that the prospect of increased exports could encourage Moscow to end its war against Ukraine.
He suggested Russia could achieve an exportable diesel surplus by reaching an energy ceasefire with Ukraine, repairing its refineries or reducing fuel consumption for military operations.
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