US Temporarily Lifts Sanctions On Iranian Oil To Ease Global Price Surge

Washington, Mar 21: The United States has announced a one-month suspension of sanctions on Iranian oil stranded at sea, aiming to stabilise surging global crude prices by releasing about 140 million barrels into the market.

US Treasury Secretary Scott Bessent said the move allows the sale of oil already in transit but strictly prohibits new purchases or production. “This temporary, short-term authorisation is narrowly tailored,” he said in a post on X.

The decision comes amid volatile oil markets, with Brent crude prices swinging from around USD 70 per barrel before the conflict to as high as USD 119.50 this week. The US hopes that unlocking stranded Iranian supply will ease global shortages and reduce price pressures.

Bessent said the measure would expand global energy availability while countering Iran’s influence in disrupting supply routes, particularly the Strait of Hormuz. He also claimed that much of the sanctioned Iranian oil is currently being stockpiled by China at discounted rates.

The exemption, which took effect Friday, will remain in place until April 19. Despite the easing, Bessent stressed that Iran would face difficulty accessing the revenue generated and that Washington would continue its “maximum pressure” campaign on Tehran’s financial channels.

Fuel prices in the US have also risen sharply, with petrol climbing from USD 3 per gallon before the conflict to USD 3.99 currently.

Meanwhile, the administration of US President Donald Trump said it is working to bring an additional 440 million barrels of oil to global markets to offset disruptions linked to Iran.

Earlier, Trump indicated that the US may consider winding down military operations against Iran but ruled out a ceasefire for now. “We can have dialogue, but I don’t want to do a ceasefire,” he said at the White House before departing for Florida, signalling a possible shift in strategy even as tensions persist. (Agencies)