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 said the waiver would bring approximately 140 million barrels of oil to global markets and help relieve pressure on energy supply.
This is the third time the US has temporarily eased sanctions in about two weeks, following a similar move on Russian oil. A new general licence allows the sale of Iranian crude oil and petroleum products loaded on vessels as of Friday until 19 April. Bessent emphasised that the authorisation is strictly limited to oil already in transit and does not permit new purchases or production.
The move reflects White House concern over soaring oil prices, which have risen about 50% to more than $100 a barrel, the highest since 2022. The price spike threatens to hurt US businesses and consumers ahead of the November midterm elections, where Republicans hope to retain control of Congress.
Critics have raised concerns that the waiver could benefit Iran's war effort. David Tannenbaum, director at Blackstone Compliance Services, described the policy as 'bananas', arguing it could allow Iran to fund its military operations. Bessent countered that Iran will have difficulty accessing any revenue generated and that the US will maintain maximum pressure on Tehran's access to the international financial system.
The waiver comes amid significant disruptions to energy infrastructure in Iran and neighbouring Gulf states, and Iran's effective closure of the Strait of Hormuz, a conduit for about 20% of the world's oil and liquefied natural gas. Energy analysts, including Brent Erickson of Obsidian Risk Advisors, noted that efforts to control prices will not have a meaningful impact until the strait is reopened. The move is expected to benefit China, the top buyer of Iranian oil, with supplies potentially reaching Asian markets within days.
Meanwhile, Iran's foreign minister, Abbas Araqchi, has begun talks with Japan about possibly reopening the strait to allow passage of Japanese-related vessels. Japan depends on the Middle East for about 95% of its oil supplies and has been forced to release oil from its reserves amid the price surge.
