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The U.S. Department of the Treasury has authorized the purchase of Iranian oil already in transit, granting a temporary sanctions exemption as the administration of President Donald Trump seeks to ease surging global energy prices during the ongoing conflict with Iran.
Under the license, buyers may purchase Iranian oil loaded onto tankers before 12:01 a.m. ET Friday. The authorization remains in effect until April 19 and excludes transactions involving entities in North Korea, Cuba, or Russian-occupied regions of Ukraine.
Treasury Secretary Scott Bessent said the move could release roughly 140 million barrels of oil into global markets, describing it as a way to counter supply disruptions and limit price spikes.
“In essence, we will be using the Iranian barrels against Tehran to keep the price down,” Bessent said, framing the policy as part of a broader wartime effort to stabilize energy markets.
Strategic Shift Amid “Maximum Pressure” Policy
The decision represents a limited but notable adjustment to Trump’s longstanding “maximum pressure” sanctions strategy against Iran, which has heavily restricted the country’s oil exports and financial access since his first term.
Bessent emphasized that the administration will continue to enforce financial restrictions intended to prevent Iran from accessing most of the proceeds from oil sales.
Still, the waiver reflects the administration’s balancing act between maintaining economic pressure on Iran and mitigating the global economic fallout from the conflict.
Broader Sanctions Flexibility
The move follows a similar one-month authorization allowing the purchase of Russian oil already at sea, signaling a broader willingness to temporarily ease sanctions to address market volatility.
That decision drew sharp criticism from congressional Democrats, including Senate Minority Leader Chuck Schumer, who warned that loosening restrictions could provide financial benefits to Vladimir Putin amid the war in Ukraine.
Supply Disruptions and Market Pressures
Global oil markets have been strained by disruptions tied to the U.S.-Iran conflict, particularly in the Strait of Hormuz, a critical chokepoint through which roughly 20% of the world’s oil supply typically passes.
Shipping traffic through the strait has slowed significantly as tanker operators face heightened security risks, complicating exports from major Gulf producers. Iran, however, has continued moving its own oil shipments through the passage.
To offset supply constraints, the administration has also released 172 million barrels from the Strategic Petroleum Reserve and allowed foreign vessels to transport oil between U.S. ports. Despite those measures, oil prices have remained near multiyear highs.
Military and Security Considerations
Trump has floated the possibility of providing military escorts for oil tankers transiting the Strait of Hormuz, though he indicated Friday that allied nations should take a leading role.
“If asked, we will help these countries in their Hormuz efforts,” Trump said, adding that such measures may become unnecessary if Iran’s threat diminishes.
The conflict has already seen strikes on energy infrastructure across the region. U.S. forces recently targeted military sites on Kharg Island, Iran’s primary oil export hub, and Trump has warned of further action if Tehran interferes with maritime traffic.
What Comes Next
The temporary sanctions relief is expected to provide short-term supply increases, but analysts say longer-term stability will depend on security conditions in the Persian Gulf and broader geopolitical developments.
The administration’s approach underscores the complex interplay between economic policy and military strategy as the conflict continues to reshape global energy markets.
