The Trump administration has issued a sanctions waiver allowing the purchase of Iranian oil for 30 days without the threat of US economic penalties, as it scrambles to address oil and gas prices that have been driven up as a result of the US and Israel launching a war against Iran.
“Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,” Treasury Secretary Scott Bessent wrote on X.
“At present, sanctioned Iranian oil is being hoarded by China on the cheap. 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,” he added.
For its part, Iran denied the idea that it had oil “stranded at sea” and suggested the US waiver was meant to manipulate the global oil market. “Iran currently has no crude oil left on the water and no surplus intended for other international markets,” said Saman Ghodousi, spokesman for Iran’s petroleum ministry. “The US Treasury Secretary’s remarks are simply aimed at reassuring buyers and influencing market sentiment.”
Bessent said that the US was “using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” but it’s unclear how allowing Iranian oil to be sold to more countries will hurt Iran, which has continued to export oil as it has taken control of the Strait of Hormuz.
Bessent did suggest that Iran wouldn’t be able to access funds used to purchase Iranian oil under the sanctions waiver, saying Tehran will “have difficulty accessing any revenue generated and the United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system.”
Oil prices could rise even more as President Trump is threatening to start bombing Iranian power plants if Tehran doesn’t “fully open” the Strait of Hormuz. Iran has said that if Trump follows through on the threat, it will target similar infrastructure across the region and shut down all traffic in the Strait of Hormuz.
