US May Ease Sanctions on Iranian Oil at Sea
The United States may temporarily lift sanctions on Iranian oil stranded on tankers at sea as Washington looks for ways to cool surging crude prices caused by the Strait of Hormuz crisis. The proposal was outlined by US Treasury Secretary Scott Bessent, who said the move could quickly add supply to the market during a period of severe energy disruption.
US Sanctions Relief for Iranian Oil
Bessent said the US could soon allow roughly 140 million barrels of Iranian oil already on the water to enter the market. He described it as a short-term step aimed at preventing prices from climbing further as shipping through the Strait of Hormuz remains disrupted. According to his remarks, the oil had largely been headed to China, but a temporary waiver could redirect those barrels more broadly into global supply chains.
Strait of Hormuz Crisis Drives Oil Concerns
The proposal comes as oil prices have stayed above $100 a barrel for much of the past two weeks following Iran’s closure of the Strait of Hormuz and attacks on shipping. Washington believes increasing physical oil supply is one of the quickest ways to reduce pressure on energy markets. Bessent also signalled that the US could take additional steps, including further use of strategic reserves, to steady the market.
Market Impact and Policy Questions
While the possible waiver may offer short-term relief, questions remain over its wider consequences. Analysts have noted that allowing sanctioned Iranian oil to be sold could also generate revenue for Tehran at a time of open conflict. That has made the idea politically sensitive even if it helps ease immediate supply stress. For now, the plan reflects how sharply the energy shock from the Gulf conflict is reshaping policy choices in Washington.
