Amid the ongoing war, the United States has issued a 30-day sanctions waiver on Iranian oil currently at sea, aiming to ease concerns over global energy supply as the Middle East conflict continues to intensify. This comes days after the US lifted sanctions on Russian oil.
US Treasury Secretary Scott Bessent said the authorisation applies only to Iranian crude and petroleum products already in transit. “This temporary, short-term authorisation is strictly limited to oil that is already in transit and does not allow new purchases or production," he said.
The waiver, outlined in a general licence on the US Treasury website, covers cargoes loaded between March 20 and runs until April 19. This is the third time in about two weeks that Washington has relaxed sanctions, following an earlier easing on Russian oil.
Bessent said the move is meant to add supply to global markets at a time of rising pressure
According to Bessent, the step could quickly release around 140 million barrels of oil into the global market. He claimed that much of the sanctioned Iranian oil is currently being held by China at low prices.
“By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran," US Treasury Secretary said on X.
He added that the US would be “using the Iranian barrels against Tehran to keep the price down" as part of Operation Epic Fury.
The proposal had been hinted at a day earlier during a Fox Business interview. However, it drew criticism from analysts.
David Tannenbaum of Blackstone Compliance Services said, “To put it mildly, this is bananas… Essentially, we’re allowing Iran to sell oil, which could then be used to fund the war effort."
Bessent rejected this view, saying the waiver is narrowly defined and that Iran will struggle to access any revenue generated. He stressed that the US would continue its “maximum pressure" policy.
However, Iran dismissed the US claims, saying it does not have surplus crude available for global buyers.
Iranian oil ministry spokesman Saman Ghoddoosi said, “Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets, and the US treasury secretary’s statement is solely aimed at giving hope to buyers."
The move comes after joint US and Israeli strikes on Iran escalated tensions in the region. The situation has disrupted a key global oil route, with Iran effectively blocking the Strait of Hormuz, through which about 20 per cent of the world’s oil and gas usually passes. Continued attacks on energy infrastructure have pushed crude prices higher.
Meanwhile, US President Donald Trump has also indicated that he may consider “winding down" military operations against Iran, even as Washington moves to ease sanctions temporarily to address the global supply crunch.
