Trump's decision that upends the energy market: US temporarily lifts sanctions on 140 million barrels of Iranian oil
“A purely temporary measure,” the US ambassador to the UN said of the Trump Administration's decision to lift sanctions on Iranian oil. The move is intended to block Tehran's strategy to drive up international energy prices, according to CNN.
Trump administration officials are scrambling to secure every barrel of oil available amid an energy crisis three weeks after war with Iran broke out.
The US Treasury has announced that it is temporarily lifting sanctions on 140 million barrels of Iranian oil already loaded on ships. This amount, which is equivalent to global oil consumption for about 36 hours, can be delivered and sold until April 19, according to the new authorization.
The administration is looking at options to rein in rising oil and gas prices, while domestic estimates indicate that high prices caused by the war could persist for months.
The situation comes as fighting in the Middle East intensifies and passage through the Strait of Hormuz remains nearly impossible, according to sources familiar with the internal discussions, cited by CNN.
The United States has imposed sanctions on Iranian oil on and off for decades, and the Trump administration previously blocked crude sales after pulling out of the nuclear deal in 2018.
The new license allows Tehran to sell oil under sanctions. Although Iran was already directing production to China, its main trading partner, and keeping oil transit through the Strait of Hormuz open, the current waiver extends access to these resources to Western states as well.
The measure comes as the conflict has pushed global oil prices to around $110 per barrel. In this regard, the US administration has activated all the levers to stabilize the market, including by lifting sanctions on hundreds of millions of barrels of Russian oil during the past week.
Because of the financial sanctions in place, Iran could face major difficulties in accessing the revenues generated, Treasury Secretary Scott Bessent said on Friday. He stated that the United States will maintain pressure on Tehran and its ability to use the international financial system.
The decision was supported by David Malpass, former president of the World Bank, who described the move as a strong economic step for global stability.
