US Treasury Temporarily Lifts Sanctions on 140 Million Barrels of Iranian Oil

The United States Treasury Department temporarily suspended sanctions on Iranian oil already loaded on tankers at sea, permitting its sale and delivery until April 19, 2026, in a move aimed at easing global energy prices driven sharply higher by the ongoing war with Iran. Treasury Secretary Scott Bessent had signaled the measure on Thursday before the formal announcement on Friday. The administration described the license as "narrowly tailored" and strictly temporary, applying only to crude oil and petroleum products already at sea. The step represents one of the most direct US interventions in global energy markets since the war with Iran began on February 28, 2026. President Donald Trump had previously called on countries dependent on oil shipments through the Strait of Hormuz to support efforts to secure shipping in the region.

140 million barrels expected to reach global markets Scott Bessent stated the license would allow approximately 140 (million barrels) — Iranian oil expected to reach global markets of oil to reach global markets quickly, relieving what he described as temporary supply pressures caused by the conflict. The Treasury Department said the measure would allow delivery and sale of Iranian crude oil and petroleum products for the permitted period. Bessent noted that Iranian oil continues to flow from the Persian Gulf to India and China, which remain the most important buyers of Iranian crude. The license carries restrictions, including a prohibition on sales involving parties in North Korea or Cuba. The US also recently issued a separate temporary waiver for Russian oil shipments already at sea, valid until April 11, 2026, citing similar supply concerns. Both measures reflect the administration's effort to boost global oil supply during a period of severe market disruption caused by the war.

US Sanctions Waivers on Stranded Oil Shipments: Iranian oil waiver deadline (before: Sanctions in force, after: Suspended until April 19, 2026); Russian oil waiver deadline (before: Sanctions in force, after: Suspended until April 11, 2026); Restrictions on Iranian waiver (before: None (full sanctions), after: Sales to North Korea or Cuba prohibited)

Iran denies having any surplus oil stocks at sea Iran's Oil Ministry pushed back sharply against the US announcement, with a spokesperson stating on Friday that the country currently has no surplus crude oil stocks at sea or available to supply international markets. The spokesperson, posting on the online service X, said Scott Bessent's statements were intended "merely to give buyers hope" rather than reflecting actual available supply. The denial creates uncertainty over whether the anticipated volume of oil will materialize in global markets as the Treasury Department projected. Iran's position, if accurate, would significantly undercut the practical effect of the sanctions suspension. The dispute over the existence of stranded Iranian oil stocks adds a layer of ambiguity to what the Trump administration presented as a concrete supply-side intervention. No independent verification of the volume of Iranian oil currently at sea was available in the source materials.

2026-02-27: 72, 2026-03-19: 119, 2026-03-20: 107

Oil prices drop sharply but remain far above pre-war levels Brent crude oil prices fell from 119 (USD per barrel) — Brent crude price before sanctions waiver announcement on Thursday to approximately $107 per barrel on Friday morning following news of the sanctions suspension. Before the war with Iran began, the price stood at approximately $72 per barrel, meaning prices remain roughly 49 percent above pre-war levels despite the Friday decline. The near-standstill of shipping traffic through the Strait of Hormuz has been the primary driver of the price surge, as the strait serves as one of the world's most critical chokepoints for oil and gas trade. Natural gas prices also remain elevated, according to reporting from in.gr. The administration's dual approach — easing sanctions on both Iranian and Russian stranded oil — signals a willingness to use sanctions relief as a short-term price management tool. The Strait of Hormuz, located between the Persian Gulf and the Gulf of Oman, is approximately 167 kilometers long and has long been considered one of the most strategically sensitive waterways in global energy trade. The US-Israel military campaign against Iran, designated Operation Epic Fury, began on February 28, 2026, and resulted in the death of Supreme Leader Ali Khamenei in the initial strikes. His son Mojtaba Khamenei was appointed Supreme Leader on March 9, 2026. The disruption of Hormuz traffic has sent oil and gas prices to levels not seen in recent years, prompting emergency measures from Washington.