The Trump administration has temporarily waived sanctions on Iranian oil purchases at sea for 30 days, aiming to ease surging oil prices driven by the US-Israeli war on Iran. Treasury Secretary Scott Bessent announced that the waiver would bring approximately 140 million barrels of oil to global markets, helping to relieve pressure on energy supply.
The move reflects White House concern that soaring oil prices—up about 50% to over $100 a barrel, the highest since 2022—could harm US businesses and consumers ahead of the November midterm elections. This is the third time the US has temporarily waived sanctions in about two weeks, following similar moves on Russian oil.
According to a licence posted on the US Treasury website, the waiver allows the sale of Iranian crude oil and petroleum products loaded on vessels as of Friday until 19 April. Bessent stated, "By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets."
However, the decision has raised concerns that it could benefit Iran's war effort. David Tannenbaum, director of Blackstone Compliance Services, told the BBC, "Essentially, we’re allowing Iran to sell oil, which could then be used to fund the war effort." Bessent countered that the authorization is strictly limited to oil already in transit and does not allow new purchases, adding that Iran will have difficulty accessing any revenue generated.
Energy analysts have noted that the administration's efforts may have limited impact until the Strait of Hormuz is reopened. Brent Erickson, managing principal at Obsidian Risk Advisors, said, "The easing of sanctions raises concerns about the rapid depletion of Washington’s economic toolkit." The move is expected to benefit China, the top buyer of Iranian oil, with supplies potentially reaching Asia within days.
Meanwhile, Iran's foreign minister, Abbas Araqchi, has started talks with Japan about possibly opening the Strait of Hormuz to allow passage of Japanese-related vessels. Japan, which depends on the Middle East for about 95% of its oil supplies, has been forced to release oil from its reserves amid the price surge.
