Treasury Secretary Bessent Waives Iran Oil Sanctions to Flood Global Markets

Treasury Secretary Scott Bessent announced a 30-day waiver of U.S. sanctions on Iranian crude oil already loaded on tankers at sea, a narrowly tailored move the administration says will inject roughly 140 million barrels into global markets and ease prices that have surged past $100 a barrel to their highest levels since 2022.

The license, which runs through April 19, allows buyers to purchase Iranian oil already in transit without triggering sanctions penalties. It covers only crude loaded before 12:01 a.m. ET on Friday, explicitly excluding any new purchases or fresh production. The exemption does not apply to transactions involving people in North Korea, Cuba, or Russian-occupied parts of Ukraine.

"This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production," Bessent wrote on X. In a second post, he was more blunt about the strategic logic: "In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury."

The waiver is the third time in roughly two weeks the Treasury Department has temporarily lifted sanctions on oil from U.S. adversaries. The administration previously authorized purchases of Russian crude already at sea and released 172 million barrels from the Strategic Petroleum Reserve. It also announced a 60-day waiver of the Jones Act, allowing foreign-flagged vessels to move fuel, fertilizer, and other goods between U.S. ports. Bessent said the administration is working to bring approximately 440 million additional barrels of oil to global markets through the combined measures.

The market disruptions trace directly to February 28, when U.S. and Israeli forces launched strikes on Iran. Tehran responded by effectively closing the Strait of Hormuz, the chokepoint through which roughly one-fifth of the world's oil and liquefied natural gas flows. Attacks on energy infrastructure in Iran and neighboring Gulf states compounded the supply shock.

Analysts are skeptical the waivers will be enough. Brett Erickson, managing principal at Obsidian Risk Advisors, said the administration's efforts "will not have a meaningful impact until the strait is opened to vessels." The 140-million-barrel figure cited by the administration also warrants scrutiny: analysts note the total includes cargos already booked and contracted, meaning actual new supply reaching the market could be considerably lower.

A further complication is where Iranian oil was heading before the waiver. Over 90 percent of Iranian crude exports had been flowing to China, raising questions about how much of this supply will genuinely enter the broader global market rather than simply continuing on routes already established.

President Trump, writing on Truth Social, signaled the administration could go further: "If asked, we will help these Countries in their Hormuz efforts, but it shouldn't be necessary once Iran's threat is eradicated."

CBS News characterized the move as a wartime loosening of Trump's "maximum pressure" strategy toward Iran, a policy dating to his first term. Congressional Democrats have sharply criticized the administration for easing sanctions on Russian oil; similar criticism is likely to follow this Iranian exemption.

The core tension the waiver cannot resolve is physical: until ships can actually transit the Strait of Hormuz, the oil sitting in tankers at sea represents potential supply, not actual relief.