US temporarily pauses sanctions on Iranian oil at sea

The Trump administration on Friday temporarily paused sanctions on Iranian oil currently at sea, authorizing its sale to most countries in an effort to increase global crude supply and moderate energy prices.

Treasury Secretary Scott Bessent announced the decision on X, stating that the Department of the Treasury issued "a narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea." The license applies to oil loaded on vessels as of March 20 and remains in effect until April 19.

Bessent estimated that the authorization would add approximately 140 million barrels of crude to the global oil market. He said the move aimed to "relieve the temporary pressures on supply caused by Iran."

The authorization is strictly limited to oil already in transit and does not extend to new shipments. Bessent noted that sanctioned Iranian oil is presently being "hoarded by China on the cheap," and said the administration would use "the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury."

Despite the temporary lifting of sanctions, Bessent emphasized that Iran would see minimal economic benefit from the removal. "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," he said in a post on X.

The decision follows the Trump administration's easing of sanctions on Russian oil announced the previous week. The pause in Iranian oil sanctions represents a shift in the administration's approach to Iran's energy sector after years of imposing what officials described as "maximum pressure" on Iran's energy exports.

The temporary authorization applies to oil loaded on tankers as of Friday and extends through April 19, after which the sanctions restrictions would resume unless further action is taken.