'Bring almost 140 mn barrels to global markets': After Russian, US eases sanctions on Iranian oil

After Russian crude, the US has now issued a 30-day sanction waiver on Iranian oil, currently at sea, to ease rising concerns about energy supply flows as Middle East conflict continues to boil. US treasury secretary Scott Bessent said that the authorisation applies specifically to Iranian crude and petroleum products that are already in transit. “This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” he stated.The waiver, outlined in a general licence posted on the US Treasury website, covers cargoes loaded between March 20 and extends till April 19. This marks the third instance in roughly two weeks that Washington has relaxed sanctions, following an earlier easing on Russian oil. Explaining the move, Bessent said the step is intended to inject additional supply into global markets.He added that at present, the sanctioned "Iranian oil is being hoarded by China on the cheap."“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 said in a statement on X. He added, “In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury.”He had suggested the proposal a day earlier during a Fox Business interview, indicating that sanctions relief was under consideration. The suggestion drew criticism from analysts, who argued the policy could have unintended consequences.“To put it mildly, this is bananas,” Blackstone Compliance Services’ David Tannenbaum told the BBC. “Essentially, we’re allowing Iran to sell oil, which could then be used to fund the war effort.”Bessent, however, rejected that interpretation, emphasising that the waiver is narrowly defined.“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.” Tehran, meanwhile, said that it does not have extra crude oil to sell to global buyers.“Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets, and the US treasury secretary’s statement is solely aimed at giving hope to buyers,” Iranian oil ministry spokesman Saman Ghoddoosi wrote on X. Following joint US and Israeli strikes on Iran, tensions in the region have disrupted a key global oil route, with Iran effectively blocking the Strait of Hormuz, a passage that typically carries about 20% of the world’s oil and gas, alongside continued attacks on energy infrastructure, driving crude prices higher.Donald Trump also suggested that he was considering “winding down” military operations against Iran, even as the United States temporarily eased sanctions on Iranian oil shipments to address a global supply crunch.