After striking Iran, US eases sanctions on Iranian oil to curb prices
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The U.S. Treasury Department issued a temporary license on March 20 to waive sanctions on Iranian oil purchases at sea as a response to surging global oil prices triggered by the U.S.-Israeli war against Iran.
According to the license, the actions are in effect for 30 days, until April 19.
United States Treasury Secretary Scott Bessent said on March 21 that by releasing the 140 million barrels of sanctioned Iranian oil that China is hoarding at low prices, the U.S. could quickly ease temporary supply pressures in global markets.
"This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production," Bessent wrote on X.
Global oil and gas prices surged after the U.S. and Israel launched strikes on Iran on Feb. 28. Tehran responded by closing the Strait of Hormuz — a maritime chokepoint through which roughly one-fifth of the world's oil supply flows.
Bessent stated that the Trump Administration has been working to bring approximately 440 million additional barrels of oil to the global market, undermining Iran's ability to exploit its disruptions in the Strait of Hormuz.
Previously, on March 12, the Trump administration has temporarily eased restrictions on Russian oil transit and purchases.
The Center for Research on Energy and Clean Air (CREA) found that Russian oil revenues have soared in two weeks of fighting between the U.S. and Iran, providing Moscow with an additional 6 billion euros ($6.9 billion) in revenue.
In response to the rising oil prices, the International Energy Agency (IEA), comprising 32 member states, announced on March 11 that it had agreed to release 400 million barrels of oil from its strategic reserves.
