US approves sale of Iranian oil at sea in move to ease crude supply crisis

The US Treasury Department temporarily lifted sanctions on Iranian oil already loaded on ships before March 20, authorizing its sale until April 19. This decision aims to ease the crude oil supply crisis stemming from Middle East tensions, including Iran's actions in the Strait of Hormuz and attacks on energy infrastructure, which have driven up prices. The Office of Foreign Assets Control, under Treasury Secretary Scott Bessent, made the move, similar to a previous lifting of sanctions on Russian oil at sea. Bessent stated the authorization is a short-term measure to maximize global energy flow and stabilize the market. He also noted that China is currently hoarding sanctioned Iranian oil at discounted prices.

The US Treasury Department issued a 30-day sanctions waiver allowing the purchase of Iranian oil already at sea, aiming to ease global energy supply pressures. Treasury Secretary Scott Bessent stated the move would release approximately 140 million barrels of oil to the market, offsetting supply constraints linked to the US-Israeli war on Iran. This is the third temporary sanctions relief measure in recent weeks, following similar actions regarding Russian oil and a general license for certain Iranian crude oil sales. The US claims this action will use Iranian oil to keep prices down while maintaining pressure on Iran's financial system, limiting their access to revenue. Analysts have raised concerns that the policy could inadvertently benefit Iran's war efforts, despite the US Treasury's assurances.