The Trump administration on Friday granted Iran a “temporary waiver” to sell oil already at sea — estimated at roughly 140 million additional barrels — a move expected to enable allies facing acute supply shortages to purchase the cargo.
The decision comes after oil and gas prices surged sharply, with officials estimating that the spike triggered by the war could persist for months, particularly as fighting in the Middle East intensifies and transit through the Strait of Hormuz remains nearly impossible.
ALSO READ | Explained: US approves sanctions relief for Iranian oil amidst its war with Tehran “Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea,” Treasury Secretary Scott Bessent said in a post on X.
He emphasised that the authorisation is strictly limited to oil already in transit and does not permit any new purchases or production.
Bessent added that much of the oil had already been stockpiled by China, and that the move would redirect the roughly 140 million barrels into global markets, increasing overall supply and helping to ease temporary disruptions caused by the conflict involving Iran.
“In essence, we will be using the Iranian barrels against Tehran to keep prices down as we continue Operation Epic Fury,” he said.
Bessent further argued that, despite appearances, the measure would not strengthen Iran, stressing that Tehran would face difficulty accessing any revenue generated.
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