Treasury Issues 30-Day Sanctions Waiver on Iranian Oil at Sea, Freeing 140 Million Barrels for Global Markets

The US Treasury Department on Friday issued a 30-day general license permitting the purchase of Iranian crude oil and petroleum products already loaded on vessels at sea, a move that Treasury Secretary Scott Bessent said would bring approximately 140 million barrels to global markets Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans.. The authorization, which runs until April 19, applies to Iranian oil loaded onto ships by 12:01 a.m. ET on Friday and excludes buyers in North Korea, Cuba and Russian-occupied parts of Ukraine Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans..

The waiver represents the administration's latest attempt to contain an energy market roiled by the US-Israeli war on Iran, which has driven oil prices up roughly 50 percent to above $100 per barrel — the highest since 2022 . It is the third time in approximately two weeks that the administration has temporarily suspended sanctions on an adversary's oil exports, following a similar one-month reprieve for Russian crude at sea issued the previous week Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans..

Turning Iran's Oil Against Tehran

Bessent framed the move as an act of economic warfare against Tehran rather than a concession. In a statement posted to X, he said the United States would be using Iranian barrels against Tehran to suppress prices while Operation Epic Fury — the military campaign's official name — continues . He argued that the 140 million barrels had previously been destined for Chinese refineries, which had acquired the crude at steep discounts under the sanctions regime, and that the waiver would redirect those supplies to other buyers in need, including India, Japan and Malaysia US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply..

The Treasury Secretary was emphatic that Tehran would struggle to access revenue generated from the sales. He maintained that the authorization was strictly limited to oil already in transit and did not permit new purchases or production, and that the United States would continue to impose maximum financial pressure on Iran's ability to access the international banking system Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans..

Bessent had previewed the decision during an appearance on Fox Business on Thursday, outlining the volume at stake: roughly 140 million barrels of Iranian crude sitting on tankers at sea, which he described as enough to cover between 10 and 14 days of the supply shortfall created by Iran's closure of the Strait of Hormuz US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply.. He noted that the approach mirrored a tactic the Treasury had deployed weeks earlier with sanctioned Russian oil, a move he said added around 130 million barrels to global supplies US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply..

Critics Warn Revenue Could Flow Back to Tehran

The decision drew immediate scrutiny from sanctions experts and opposition lawmakers. David Tannenbaum, director at Blackstone Compliance Services, a consultancy specializing in maritime sanctions, called the policy counterproductive, warning that allowing the sale of Iranian crude could channel funds directly back to Tehran's war effort . Tannenbaum described the approach as allowing Iran to sell oil that could then be used to finance the very military operations the United States is fighting against Trump administration temporarily lifts sanctions on Iranian oil at seacbsnews.com·SecondaryThe U.S. Treasury has authorized the purchase of Iranian oil that's already at sea, exempting buyers from the tight sanctions that have restricted the country's oil industry for years — a move aimed at stemming soaring prices amid the U.S.'s war with Iran. The sanctions license allows oil from Iran to be purchased if it was loaded onto a ship by 12:01 a.m. ET on Friday. The authorization lasts until April 19..

Alex Zerden, founder of Capitol Peak Strategies and a former Treasury Department official, offered a similarly skeptical assessment. Zerden cautioned that Iran would likely find ways to profit from the sales, potentially providing additional funding for the regime and its network of regional proxies US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply.. He expressed doubt that the stopgap measure would reassure markets given the scale of the ongoing supply disruption and the uncertain trajectory of the Gulf conflict US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply..

Brent Erickson, a managing principal at Obsidian Risk Advisors, said the easing of sanctions raised concerns about the rapid depletion of Washington's economic toolkit for dampening oil prices. If the administration had reached the point of loosening sanctions on the country it was at war with, Erickson argued, it was running out of options Trump administration temporarily lifts sanctions on Iranian oil at seacbsnews.com·SecondaryThe U.S. Treasury has authorized the purchase of Iranian oil that's already at sea, exempting buyers from the tight sanctions that have restricted the country's oil industry for years — a move aimed at stemming soaring prices amid the U.S.'s war with Iran. The sanctions license allows oil from Iran to be purchased if it was loaded onto a ship by 12:01 a.m. ET on Friday. The authorization lasts until April 19..

Congressional Democrats have also been sharply critical. Senate Minority Leader Chuck Schumer and several other Senate Democrats issued a joint statement arguing that the channels for evasion the president was opening, combined with dramatically higher global energy prices, were giving Russian President Vladimir Putin a financial boost and the means to continue his war in Ukraine Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans..

The Administration's Defense

Defenders of the approach counter that the alternative — allowing prices to continue climbing unchecked — would inflict significant damage on the American economy and on allied nations dependent on Gulf oil. They argue the waiver is narrowly scoped and time-limited, designed to buy breathing room while military operations continue rather than to provide a permanent off-ramp for Iranian sanctions US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply..

David Malpass, the former president of the World Bank, endorsed the move as a narrow action that should put downward pressure on oil prices outside China and potentially reduce Iran's overall oil revenue by undercutting its pricing power. Malpass pointed to the waiver as one in a series of steps taken the previous week — including Jones Act waivers, pipeline openings and refinery construction — that would benefit US energy supplies over the longer term.

Energy Secretary Chris Wright said supplies freed by the waiver could reach Asian markets within three to four days and enter consumer markets after being refined over the following month and a half Trump administration temporarily lifts sanctions on Iranian oil at seacbsnews.com·SecondaryThe U.S. Treasury has authorized the purchase of Iranian oil that's already at sea, exempting buyers from the tight sanctions that have restricted the country's oil industry for years — a move aimed at stemming soaring prices amid the U.S.'s war with Iran. The sanctions license allows oil from Iran to be purchased if it was loaded onto a ship by 12:01 a.m. ET on Friday. The authorization lasts until April 19..

Broader Supply Crisis Remains Unresolved

The sanctions waiver is part of a broader scramble to manage a supply disruption of historic proportions. Ship traffic through the Strait of Hormuz — the chokepoint between Iran and the Arabian Peninsula that normally carries some 20 percent of the world's oil Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans. — has slowed to a crawl since Iran began attacking tankers transiting the waterway. The International Energy Agency reported that oil and product flows through the strait had plummeted dramatically, marking one of the largest supply disruptions in recent memory US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply..

The deficit created by the closure has been estimated at 10 million to 14 million barrels per day US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply.. The 140 million barrels freed by the waiver would cover less than two weeks of that daily shortfall, meaning the measure functions as a temporary bridge rather than a lasting solution.

The administration has pursued multiple parallel strategies. Trump ordered the release of 172 million barrels from the Strategic Petroleum Reserve , and the G7 coordinated the largest multilateral reserve release in history at 400 million barrels the previous week US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply.. Washington has also allowed foreign ships to move oil between US ports under Jones Act waivers. But prices have so far remained near multiyear highs despite these interventions Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans..

Trump has floated the possibility of US military escorts for tankers through the Strait of Hormuz, though he indicated on Friday that he wanted other countries to take the lead on any escort operation, noting that the United States is not reliant on Middle Eastern oil Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans.. Military targets on Kharg Island — Iran's main oil export terminal — were struck the previous week, and Trump has threatened further strikes on oil-related targets if Iran continues to interfere with the strait Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Seaclankertimes.com·UnverifiedTreasury Secretary Bessent said the US may unsanction Iranian oil on tankers within days, aiming to stabilize prices above $100 per barrel amid the Strait of Hormuz closure. Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans..

Diplomatic Maneuvering Intensifies

The crisis has accelerated diplomatic activity among major oil-consuming nations. Japan, which depends on the Middle East for approximately 95 percent of its oil supplies and receives roughly 90 percent of its oil shipments via the Strait of Hormuz, has been particularly active . Japanese Prime Minister Sanae Takaichi visited the White House on Thursday, where Trump praised Japan's contributions to the stabilization effort US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply.. Bessent noted that Japan's navy operates some of the most capable minesweeping and mine-detection assets in the world US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply..

Meanwhile, Iran's foreign minister Abbas Araqchi told a Japanese news agency that Tehran had started talks with Tokyo about possibly opening the strait to allow the passage of Japanese-related vessels Trump administration temporarily lifts sanctions on Iranian oil at seacbsnews.com·SecondaryThe U.S. Treasury has authorized the purchase of Iranian oil that's already at sea, exempting buyers from the tight sanctions that have restricted the country's oil industry for years — a move aimed at stemming soaring prices amid the U.S.'s war with Iran. The sanctions license allows oil from Iran to be purchased if it was loaded onto a ship by 12:01 a.m. ET on Friday. The authorization lasts until April 19. — a signal that Iran may be willing to negotiate selective access even as it maintains the broader blockade.

The crisis has also reshaped dynamics between Washington and Beijing. Bessent singled out China as an unreliable supplier of refined products, noting that Beijing had halted exports of jet fuel and other petroleum products to neighboring Asian countries US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply.. The accusation carries weight at a moment when global supply chains for refined fuels are already strained by the Hormuz disruption.

What Happens Next

The administration faces a narrow window. Bessent indicated the measures were designed to provide 10 to 14 days of price relief US lifts sanctions on Iranian oil at sea in bid to ease supply pressurestheguardian.com·SecondaryTreasury secretary Scott Bessent says move will bring 140m barrels to market but insists Tehran will not benefit The Trump administration has waived sanctions on Iranian oil purchases at sea for 30 days to ease surging oil prices driven by the US-Israeli war on Iran. The US treasury secretary, Scott Bessent, said the waiver would bring about 140m barrels of oil to global markets and help relieve pressure on energy supply., suggesting Washington expects either a partial reopening of the strait or additional supply commitments from allies within that timeframe. If neither materializes, the Treasury may find itself reaching for increasingly unconventional tools to prevent markets from breaking.

For energy markets, the near-term trajectory depends on whether the 140 million barrels can be absorbed quickly enough to offset ongoing losses from the Hormuz closure. Even optimistic scenarios suggest additional measures — whether further SPR releases, increased allied production, or a resolution to the Hormuz blockade itself — will be necessary to prevent a sustained price spike that could ripple through the global economy heading into the fall midterm election season Trump administration temporarily lifts sanctions on Iranian oil at seacbsnews.com·SecondaryThe U.S. Treasury has authorized the purchase of Iranian oil that's already at sea, exempting buyers from the tight sanctions that have restricted the country's oil industry for years — a move aimed at stemming soaring prices amid the U.S.'s war with Iran. The sanctions license allows oil from Iran to be purchased if it was loaded onto a ship by 12:01 a.m. ET on Friday. The authorization lasts until April 19..

The pattern of serial sanctions waivers — first on Russian oil, now Iranian — points to a broader tension at the heart of the administration's approach: the difficulty of prosecuting a military campaign against a major oil producer while simultaneously trying to keep energy affordable for American consumers. Whether the Treasury's unconventional supply management can hold that tension together may depend less on policy mechanics than on the trajectory of the war itself.