Washington, Mar 21: The United States has temporarily lifted sanctions on Iranian oil stranded at sea, allowing about 140 million barrels to reach global markets in an effort to ease surging crude prices.
US Treasury Secretary Scott Bessent clarified that the short-term authorisation applies only to oil already in transit and does not permit new purchases or production. The move comes as Brent crude prices have spiked from roughly USD 70 per barrel before the war to nearly USD 119.50 this week.
Bessent noted that much of the sanctioned Iranian oil was being hoarded by China, and releasing it would quickly increase supply worldwide, helping to relieve temporary disruptions caused by Iran. The pause on sanctions is effective from Friday and will end on April 19.
Despite the temporary relief, the US affirmed that Iran would face difficulty accessing any revenue from these sales, maintaining maximum financial pressure on the country. The Trump administration has previously aimed to introduce around 440 million additional barrels into the global market to mitigate Iran’s leverage over the Strait of Hormuz.
Meanwhile, US President Donald Trump indicated a potential scaling down of military operations in the Middle East but said he is not pursuing a formal ceasefire with Iran. He stressed that dialogue is possible, but no cessation of hostilities will be declared while US objectives are being met.
The temporary measure is expected to provide short-term relief to global energy markets, with petrol prices in the US rising from USD 3 per gallon to nearly USD 3.99 since the conflict began.