The Trump administration has temporarily authorized the purchase of Iranian oil currently at sea, a move intended to alleviate pressure on global energy supplies amid escalating tensions in the Middle East. The decision, a 30-day sanction waiver, comes as oil prices have surged past $100 a barrel, fueled by the ongoing conflict between the U.S.-Israel and Iran, according to U.S. Treasury Secretary Scott Bescent.
This marks the third time in approximately two weeks the U.S. Has offered a temporary reprieve from sanctions. Prior to this, the U.S. Had already eased restrictions on Russian oil, and on Friday issued a general license permitting the sale of Iranian crude oil and petroleum products that were already loaded on vessels between March 20 and April 19, as detailed in documents published on the U.S. Treasury Department’s website.
“Temporarily unlocking existing supplies to the global market will allow the United States to add approximately 140 million barrels of oil to the global market quickly, boosting global energy supplies and alleviating temporary supply pressures stemming from Iran,” Bescent stated in a release posted on X.
“In short, we are using ‘Iranian oil’ in reverse to pressure Tehran itself, to bring down oil prices while we continue Operation Epic Fury,” Bescent said.
Beyond the sanction waivers, the Trump administration has also released over 45 million barrels from the Strategic Petroleum Reserve and temporarily eased century-old shipping requirements to help lower transportation costs. The development underscores the administration’s efforts to stabilize global energy markets during a period of heightened geopolitical instability.
Global benchmark crude oil prices closed Friday above $112 a barrel – the highest level since mid-2022 – before easing in after-hours trading following Trump’s indication that he was considering a “de-escalation” of U.S. Military operations against Iran. The announcement could influence future diplomatic talks and potentially impact the trajectory of the conflict.
