The United States (US) has approved a short-term authorisation permitting the sale of Iranian oil currently stranded at sea.
In a statement on Saturday, Scott Bessent, US treasury secretary, said the permit applies only to the sale of Iranian-origin crude oil and petroleum products that are already loaded on vessels.
He added that no new purchases will be permitted.
“Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,” he said.
“At present, 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 the US intends to leverage the Iranian barrels against Tehran to keep the price down “as we continue Operation Epic Fury”.
“This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” he said.
Furthermore, Bessent said Iran will have difficulty accessing any revenue generated, and that the US will continue to keep maximum pressure on the country and its ability to access the international financial system.
“So far, the Trump Administration has been working to bring around 440 million additional barrels of oil to the global market, undercutting Iran’s ability to leverage its disruptions in the Strait of Hormuz,” he said.
“President Trump’s pro-energy agenda has driven U.S. oil and gas production to record levels, strengthening energy security and lowering fuel costs.”
Bessent said any short-term disruptions will ultimately lead to long-term economic benefits for Americans, emphasising that true prosperity depends on security.
Major container shipping lines, on March 2, suspended sailings through the Strait of Hormuz and the Suez Canal over the Middle East conflict.
On March 13, the International Energy Agency (IEA) said crude shipments through the Strait of Hormuz fell sharply, from about 20 million barrels per day (bpd) before the war to only a trickle recently.
The supply disruptions have pushed oil price to about $112.2 per barrel.
