US Treasury Temporarily Waives Sanctions on Iranian Oil at Sea
US Treasury Secretary Scott Bessent announced a 30-day waiver of sanctions on the purchase of Iranian oil at sea, aiming to alleviate energy supply pressures amid the ongoing US-Israeli conflict involving Iran. This marks the third temporary sanctions waiver issued by the US in approximately two weeks.
The US had previously eased sanctions on Russian oil and, on Friday, issued a general license permitting the sale of Iranian crude oil and petroleum products loaded on vessels between 20 March and 19 April, as detailed on the US Treasury website.
“By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran,” Bessent stated on X.
“In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” he added.
Concerns Over Potential Benefits to Iran
Bessent initially mentioned the sanctions lift during a Fox Business interview on Thursday, which led analysts to express concerns that the policy might inadvertently support Iran’s war efforts.
“To put it mildly, this is bananas,” said David Tannenbaum of Blackstone Compliance Services.
“Essentially, we’re allowing Iran to sell oil, which could then be used to fund the war effort.”
In response, Bessent clarified in his Friday statement that the authorization is temporary and strictly limited to oil already in transit, prohibiting new purchases or production.
“This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” Bessent wrote.
“Iran will have difficulty accessing any revenue generated and the United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system.”
