US allows 30-day sale of Iran oil at sea in bid to tame prices

The Trump administration waived sanctions on the purchase of Iranian oil at sea for 30 days on Friday in its latest attempt to ease oil prices that have been driven up by the U.S.-Israeli war on Iran.

The waiver will bring some 140 million barrels ‌of oil to global markets and help relieve pressure on energy supply, Treasury Secretary Scott Bessent posted on X.

The move reflects White House worries that the surge in oil prices after nearly three weeks of U.S. and Israeli strikes on Iran will hurt U.S. businesses and consumers ahead of the November midterm elections, when President Donald Trump's fellow Republicans hope to retain control of Congress.

The license, posted to the Treasury Department's website after market hours, says Iranian oil can be imported into the United States under the waiver when necessary to complete its sale or delivery.

This is the third time the Treasury Department has temporarily waived sanctions on oil from U.S. adversaries in a little more than two weeks. The moves are part of the administration's attempts to tame energy prices that have soared above $100 a barrel to the highest levels since 2022.

The U.S. previously eased sanctions on Russian oil and on Friday issued a general license allowing the sale of Iranian crude oil and petroleum products loaded on vessels by Friday.

"In essence, we will be using the Iranian barrels against Tehran to ‌keep the price ⁠down as we continue Operation Epic Fury," Bessent said.

Bessent had telegraphed the move in an interview with Fox Business on Thursday, saying the release of the sanctioned Iranian oil into global supplies would help keep oil prices down for 10 to 14 days.

He said on Friday that Iran will have difficulty accessing any revenue generated by the move and Washington will maintain maximum pressure on Iran and its ability to access the international financial system.

Reuters