Washington, 21 March (H.S.): In a bid to calm skyrocketing oil prices triggered by Iran's blockade of the Strait of Hormuz, the US Treasury Department announced Friday a temporary waiver on sanctions for Iranian crude already loaded onto ships. The move, effective immediately, permits the delivery and sale of petroleum products loaded before March 20 and runs through April 19, unlocking an estimated 140 million barrels for world markets.
Treasury Secretary Scott Bessent framed the decision as a narrowly tailored, short-term authorization aligned with President Donald Trump's goal to maximize global energy flows and stabilize markets.
At present, sanctioned Iranian oil is being hoarded by China on the cheap, Bessent stated in an official release.
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.
The authorization, issued by the Treasury's Office of Foreign Assets Control, mirrors a prior exemption granted for Russian oil at sea amid earlier geopolitical tensions. It excludes deliveries to Cuba, North Korea, or Russian-occupied parts of Ukraine.
Iran swiftly pushed back.
Oil ministry spokesman Saman Ghoddoosi posted on X that Tehran has no surplus crude oil left on the water or for supply in other international markets, dismissing the US action as a ploy solely aimed at giving hope to buyers.
The backdrop is dire: Iran's de facto closure of the Strait of Hormuz — a chokepoint for 20 percent of global oil and gas shipments — coupled with attacks on regional energy infrastructure, has driven crude prices higher. Brent crude settled Friday at $112.19 per barrel, up 3.26 percent, while West Texas Intermediate climbed 2.27 percent to $98.32. Prices have flirted with $120 multiple times since the conflict erupted three weeks ago.
This comes as President Trump signals potential de-escalation, telling reporters Thursday the US is getting close to our objectives and mulling a wind-down of operations against Iran.
Hindusthan Samachar / Jun Sarkar
