U.S. Treasury Secretary Scott Bessent said in a post on X that this was a "narrowly tailored, short-term measure" that applies only to oil already in transit.
CNBC understands that there are roughly 124 million barrels of Russia-origin oil at sea across 30 locations globally as of March 12, enough for about five to six days of supply.
"The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term," Bessent said.
Oil prices have swung sharply since the start of the Iran war, with oil nearing hitting nearly $120 per barrel on Monday.
Global benchmark Brent closed just above $100 per barrel Thursday after Iran's new supreme leader Mojtaba Khamenei vowed to keep the Strait of Hormuz closed.
