The Trump administration has temporarily waived sanctions on Iranian oil purchases at sea for 30 days in an effort to curb surging oil prices driven by the US-Israeli war on Iran. Treasury Secretary Scott Bessent said the move would bring approximately 140 million barrels of oil to global markets, relieving pressure on energy supply.
The waiver, posted to the US Treasury website, allows the sale of Iranian crude oil and petroleum products loaded on vessels as of Friday until 19 April. It is the third time the US has temporarily eased sanctions in about two weeks, having previously waived sanctions on Russian oil.
Oil prices have risen by about 50% to more than $100 a barrel, the highest since 2022, prompting White House concern ahead of November's midterm elections. Bessent stated that the waiver would help keep prices down while maintaining maximum pressure on Iran, adding that Tehran would have difficulty accessing any revenue generated.
Critics, including compliance experts, warned that the policy could benefit Iran's war effort. Bessent countered that the authorization is strictly limited to oil already in transit and does not allow new purchases or production.
Energy analysts noted that the waiver's impact would be limited unless the Strait of Hormuz is reopened. Iran has effectively closed the waterway, through which about 20% of the world's oil and liquefied natural gas passes. Iranian Foreign Minister Abbas Araqchi has begun talks with Japan about possibly allowing Japanese-related vessels through the strait.
The move is expected to benefit China, the top buyer of Iranian oil. US Energy Secretary Chris Wright said supplies could reach Asia within three to four days and hit the market after refining over the next month and a half.
