The Donald Trump administration waived sanctions for 30 days on the purchase at sea of Iranian crude oil on the 20th (local time) to curb a surge in global oil prices driven by the United States and Israel's war with Iran. This is the third time in the past two weeks that the United States has temporarily lifted oil-related sanctions.

According to Reuters and other major foreign outlets, U.S. Treasury Secretary Scott Bessent said on X (formerly Twitter) that he approved "a very limited and short-term measure allowing the sale of Iranian crude oil currently stranded at sea."

Scott Becent

A Liberia-flagged oil tanker, Shenlong, which transports crude from Saudi Arabia through the Strait of Hormuz to India, arrives at Mumbai port on the 12th. /Courtesy of EPA Yonhap News

Under the general license issued by the U.S. Treasury's Office of Foreign Assets Control (OFAC), sales of Iranian crude oil and petroleum products loaded onto vessels before 12:01 a.m. on the 20th, New York time, are temporarily permitted. The sales authorization applies until 12:01 a.m. on the 19th of next month, New York time, and includes imports into the United States.

Minister Bessent said, "China is currently buying Iranian crude oil under sanctions at bargain prices and stockpiling it," and added, "If this supply is temporarily released to the global market, about 140 million barrels of crude would flow in, helping to ease supply pressure caused by Iran."

However, Minister Bessent stressed that the measure applies only to oil already in transit and does not allow new purchases or production. Minister Bessent said, "Since the United States plans to continue blocking Iran's access to the international financial network, it will be difficult for Iran to secure revenue from the temporary lifting of oil sanctions."

The United States imposed sanctions on Iran after the 1979 Iranian Revolution and did not import Iranian oil. Reuters said, "It is uncertain whether Iranian oil will flow into the United States under this sanction relief."

Earlier, the United States eased some sanctions on Russian crude oil, among other steps related to the surge in global oil prices. Reuters said, "As U.S. and Israeli actions against Iran's supply have continued for about three weeks, oil prices have soared, and the White House is concerned it will negatively affect U.S. corporations and consumers ahead of the November midterm elections."

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