U.S. allows 30-day at-sea sale of Iranian oil to ease oil prices

A sudden policy shift from Washington is sending ripples through global energy markets, as the Trump administration moves to counter surging oil prices amid escalating conflict with Iran.

The United States on Friday issued a 30-day waiver allowing the purchase of Iranian oil at sea, a step officials say is aimed at easing supply pressures driven by nearly three weeks of U.S. and Israeli strikes on Iran.

Treasury Secretary Scott Bessent said the measure could release roughly 140 million barrels of oil into global markets, offering temporary relief as prices climb. The decision underscores mounting concern within the White House that sustained high energy costs could weigh on American consumers and businesses ahead of the November midterm elections, when Republicans are seeking to maintain control of Congress.

THIRD SANCTIONS WAIVER DURING IRAN WAR

According to a license опубликed on the Treasury Department’s website after market hours, Iranian oil may be imported into the United States under the waiver if necessary to complete an existing sale or delivery.

The U.S. has not significantly imported Iranian crude since sanctions were imposed following the 1979 revolution, and it remains unclear whether any shipments will ultimately reach American shores under the new authorization.

The waiver excludes Cuba, North Korea and Crimea, and will remain in effect until April 19.

Analysts expect Asia—already the largest buyer of Middle Eastern oil—to benefit most from the additional supply. Energy Secretary Chris Wright said shipments could arrive in Asian markets within days, with refined products entering circulation over the following six weeks.

Independent Chinese refiners have long been the primary purchasers of sanctioned Iranian oil, capitalizing on discounted prices. Prior to the reimposition of U.S. sanctions in 2018, countries including India, South Korea, Japan, Italy, Greece, Taiwan and Turkey were also major importers.

The latest move marks the third temporary sanctions waiver issued by the Treasury Department in just over two weeks, part of a broader effort to curb oil prices that have surged past $100 per barrel—levels not seen since 2022.

Earlier actions included easing restrictions on Russian oil, as well as a general license issued Friday permitting the sale of Iranian crude and petroleum products already loaded onto vessels.

“In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” Bessent said. He had previewed the decision in a Thursday interview with Fox Business, noting that the additional supply could help stabilize prices for 10 to 14 days.

Bessent also emphasized that Iran would face challenges accessing any revenue generated under the waiver, adding that Washington intends to maintain maximum pressure on Tehran’s financial channels.

‘RUNNING OUT OF OPTIONS’

Oil prices have risen roughly 50% since February 28, when U.S. and Israeli forces launched coordinated strikes on Iran. Tehran has retaliated with attacks targeting Israel and Gulf states hosting U.S. military bases.

The conflict has disrupted critical energy infrastructure across the region, and Iran has effectively shut down the Strait of Hormuz—a vital passage through which about 20% of the world’s oil and liquefied natural gas flows.

In parallel efforts to contain costs, the administration this week announced a 60-day waiver of the Jones Act, temporarily allowing foreign-flagged vessels to transport fuel, fertilizer and other goods between U.S. ports.

Still, some analysts remain skeptical. Brett Erickson, managing principal at Obsidian Risk Advisors, said meaningful price relief is unlikely until shipping resumes through the Strait of Hormuz.

“The easing of sanctions raises concerns about the rapid depletion of Washington’s economic toolkit,” Erickson said. “If we’ve reached the point of loosening sanctions on the country we are at war with, we’re really running out of options.”

The United States earlier granted a 30-day waiver permitting countries to purchase Russian oil stranded at sea, following a separate license issued on March 5 that allowed India to buy Russian crude.

Mark Dubowitz, chief executive of the Foundation for the Defense of Democracies, welcomed the latest decision, calling it a strategic move in the broader campaign against Iran.

“We’ve worked on sanctioning Iran’s oil industry for years. This is a smart move … to help win the fight against the regime,” he said in a post on X.

Reporting by Ismail Shakil and Timothy Gardner; Additional reporting by Jasper Ward and Kanishka Singh; Editing by Chris Reese and William Mallard