Washington D.C., March 21: The United States has announced a temporary easing of sanctions on Iranian oil exports in a bid to stabilise global energy markets, as tensions in West Asia continue to disrupt supply routes and drive up crude prices.
US Treasury Secretary Scott Bessent said the move allows the limited sale of Iranian oil already in transit or stranded at sea. The short-term authorization, issued by the US Department of the Treasury, will remain in effect until April 19, 2026.
According to the Treasury’s Office of Foreign Assets Control, the exemption permits the sale, delivery, and offloading of Iranian-origin crude oil and petroleum products loaded onto vessels on or before March 20. The authorization also includes imports into the United States, though it strictly excludes new production or fresh purchases.
Bessent described the measure as a “narrowly tailored, short-term authorization” designed to ease supply pressures and stabilise global markets. He stated that approximately 140 million barrels of oil could be released into the global supply chain under this provision, helping offset disruptions caused by ongoing geopolitical tensions, particularly around the strategically vital Strait of Hormuz.
The decision comes under the administration of President Donald Trump, which has simultaneously maintained a broader policy of economic and military pressure on Iran. Bessent emphasized that Iran would face continued restrictions in accessing any revenue generated from these sales, ensuring that the broader sanctions regime remains intact.
He further noted that the US has already worked to bring an estimated 440 million additional barrels of oil into global markets, aiming to counter supply disruptions and reduce price volatility. The administration maintains that its pro-energy policies have strengthened domestic production and improved energy security.
However, Iran has strongly contested the US claims. In a statement issued via its consulate, Tehran asserted that it has “no floating crude or surplus available” for international markets, suggesting that the US move is more about influencing market sentiment than addressing actual supply.
The contradiction has added further uncertainty to already volatile energy markets, as the ongoing conflict in the region enters its fourth week. Shipping through the Strait of Hormuz remains severely restricted, continuing to strain global supply chains and heighten geopolitical risks.
Experts say the temporary easing reflects “cold market logic,” with the US seeking to quickly inject supply into the market to soften prices. Analysts estimate that oil stored in tankers at sea—often used as floating storage—could provide short-term relief if released.
The move is also expected to influence global buyers. Countries such as India may increase purchases of Iranian oil during the waiver period to secure energy supplies, while continuing to diversify import sources amid the uncertain geopolitical climate.
Despite the temporary relief, analysts warn that the underlying tensions between the United States and Iran, coupled with disruptions in key shipping routes, mean that global energy markets are likely to remain unstable in the near term.
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