The United States has temporarily lifted sanctions on Iranian oil stranded at sea for one month in a bid to cool surging global crude prices, even as President Donald Trump signalled a possible scaling down of military operations against Iran.
The pause, announced by US officials, applies to Iranian oil already loaded on vessels and will remain in effect until April 19. The move is aimed at easing supply pressures amid sharp volatility in energy markets triggered by the ongoing conflict in West Asia.
US Treasury Secretary Scott Bessent said the decision would release a significant volume of oil into global markets.
“This temporary, short-term authorisation is strictly limited to oil that is already in transit and does not allow new purchases or production,” Bessent said in a long post on X.
“Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea,” he said.
The US estimates that around 140 million barrels of Iranian oil could be unlocked through the measure, helping stabilise prices that have surged amid the conflict. Brent crude has swung sharply from about USD 70 per barrel before the war to as high as USD 119.50 this week, while US petrol prices have climbed from USD 3 to USD 3.99 per gallon.
By releasing the oil, Washington aims to counter supply disruptions linked to Iran’s actions in key energy routes.
“In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” Bessent said.
He added that Iran would struggle to access the revenues generated, stressing that broader financial restrictions remain in place.
Meanwhile, Trump indicated a potential shift in the US military approach in the region, even as fighting continues.
"We are getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East with the terrorist regime of Iran," Trump said in a post on Truth Social.
However, he ruled out any immediate ceasefire.
“Well, look, we can have dialogue, but I don’t want to do a ceasefire. You know, you don’t do a ceasefire when you’re literally obliterating the other side. We’re not looking to do that,” the US President said before leaving for Florida.
The developments come amid escalating hostilities, with Iran launching attacks on Israel and energy infrastructure in Gulf Arab states, disrupting oil supplies and pushing up global fuel and food prices.
Earlier, Iran had threatened to expand retaliatory strikes to recreational and tourist sites worldwide, while the US moved additional warships and Marines into the region. Hours later, Trump’s remarks about “winding down” operations added to mixed signals from Washington.
The conflict, which began on February 28 with US and Israeli strikes on Iranian targets, has shown no signs of easing. Despite shifting objectives — from curbing Iran’s nuclear and missile programmes to encouraging internal unrest — there have been no public indications of an uprising or a clear endgame.
With limited information emerging from Iran, the extent of damage to its nuclear, military and energy infrastructure remains unclear, even as continued attacks strain global energy supplies and heighten economic uncertainty.