The United States announced a temporary lifting of sanctions on Iranian oil that is currently stranded at sea, aiming to ease surging global crude prices. Treasury Secretary Scott Bessent said the limited measure will make about 140 million barrels of Iranian oil available to global markets.
“This temporary, short-term authorisation is strictly limited to oil that is already in transit and does not allow new purchases or production,” Bessent wrote in a long post on X. He said the pause is narrowly tailored and short-term, applying only to oil already loaded on vessels.
Brent crude has swung sharply since the conflict began, trading near USD 70 per barrel before the war and spiking to around USD 119.50 this week. US petrol prices have also climbed, rising from roughly USD 3 a gallon before the war to about USD 3.99 on Saturday.
Bessent accused China of hoarding sanctioned Iranian oil acquired at discounted prices. By unlocking this existing supply, he said, the US will quickly bring roughly 140 million barrels to world markets, expanding available energy and helping to relieve temporary supply pressures attributed to Iran’s actions.
“In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” Bessent said.
The sanction pause begins on Friday and is set to end on April 19. The Treasury emphasised that Iran will face difficulty accessing revenues generated by any sales, and that the United States will continue to apply maximum pressure on Iran and restrict its access to the international financial system.
Bessent also noted that, to date, the Trump Administration has worked to add about 440 million additional barrels of oil to the global market to blunt Tehran’s ability to leverage disruptions in the Strait of Hormuz.
Separately, President Donald Trump said on Friday the US was considering “winding down” military operations against Iran, though he insisted Washington was not seeking a ceasefire. “We are getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East with the terrorist regime of Iran,” he posted on Truth Social. At the White House, Trump added he was not looking for a ceasefire: “We can have dialogue, but I don’t want to do a ceasefire. You know, you don’t do a ceasefire when you’re literally obliterating the other side. We’re not looking to do that.”
