In a surprise move, the United States on Thursday said it is considering lifting sanctions on Iranian oil shipments currently at sea, Treasury Secretary Scott Bessent announced.
Oil prices surged to around $119 on Thursday after Iran targeted oil and gas facilities in several energy-rich Gulf countries in retaliation for Israeli strikes on Iran’s South Pars gas field, the world’s largest natural gas reserve.
Speaking on Fox Business Network’s Mornings with Maria, Bessent said the administration may soon remove restrictions on roughly 140 million barrels of Iranian crude already in transit.
He said the move is intended to prevent China from being the sole beneficiary of the supply.
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According to Bessent, the volume represents about 10 days to two weeks of exports that Iran had largely been directing to China. He added that the oil could instead be made available to what he described as “responsible buyers,” including Malaysia, Singapore, Indonesia, Japan, and India.
“In effect, we would be using Iranian oil to counter Iran by helping keep prices down over the next 10 to 14 days, as this strategy continues,” he said.
Separately, the administration of US President Donald Trump has temporarily eased sanctions on certain Russian oil shipments for 30 days in an effort to boost global supply amid the ongoing conflict involving Iran.
Oil markets have remained volatile since the conflict began on February 28, when President Trump announced a series of coordinated U.S. and Israeli strikes on Iran.
Over the past three weeks, Iran has severely disrupted shipping through the Strait of Hormuz — a critical artery for global energy supplies. Iran’s new Supreme Leader, Mojtaba Khamenei, described the move as a defensive response to U.S. and Israeli actions.
There have been attacks on vessels attempting to navigate the waterway, while the United States has conducted strikes on Iranian missile positions near the strait.
Ali Imran is a Washington-based journalist, who has worked for leading world news organizations as correspondent, expert and in editorial positions. He is a published author and poet.
