The US has temporarily relaxed sanctions on Iranian oil stuck at sea, allowing limited sales for a month in an effort to cool surging global energy prices amid the ongoing conflict in West Asia.
The US Department of Treasury issued a general licence permitting the sale of Iranian oil and petrochemical cargoes loaded on vessels before 12:01 am New York time on Friday. The authorisation will remain in place until April 19.
The move is aimed at easing supply pressures after the conflict between the US, Israel and Iran severely disrupted shipments through the Strait of Hormuz, a vital route that carries about 20 per cent of the world’s oil. Crude prices have climbed sharply in recent weeks, with Brent rising above $112 a barrel, its highest level since mid-2022.
In a post on X, US Treasury Secretary Scott Bessent described the waiver as a “narrowly tailored” and short-term measure, estimating it could release roughly 140 million barrels into the market. He added that Iran would face difficulty accessing the proceeds from these sales.
Rising fuel costs
The Trump administration has also released more than 45 million barrels from its strategic petroleum reserves and temporarily eased long-standing shipping rules to reduce transport costs.
Rising fuel prices may emerge as a key political concern ahead of the November midterm elections in the US, with sustained inflation posing risks to the ruling Republican Party’s control of Congress.
The policy shift comes amid mixed signals from US President Donald Trump, who said he was considering “winding down” military operations shortly after markets reacted negatively to another spike in oil prices.
Meanwhile, Iran has warned it may widen its retaliatory strikes, even as attacks on energy infrastructure across the region continue to strain global supply chains. The conflict has also coincided with Nowruz, the Persian New Year, marked under the shadow of ongoing airstrikes and heightened uncertainty.