Move highlights contradiction of enabling Iranian oil sales while continuing military operations against Tehran.
WASHINGTON — The Trump administration has temporarily lifted sanctions on Iranian oil shipments at sea in an effort to stabilize global energy markets, US media reported on Saturday.
According to the reports, the waiver is expected to release significant supply into the market, with US Treasury Secretary Scott Bessent stating: “By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets.”
Bessent added that the measure aims to counter supply disruptions, claiming that the US would be “using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury.”
The move comes amid a sharp rise in oil prices, which have surged by roughly 50% to over $100 per barrel, reflecting the impact of the ongoing US-Israeli war on Iran and disruptions in the Strait of Hormuz.
However, critics warned that the policy could indirectly benefit Iran. David Tannenbaum, director at Blackstone Compliance Services, told the BBC: “Essentially, we’re allowing Iran to sell oil, which could then be used to fund the war effort.”
Bessent rejected this assessment, claiming that “this temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production.”
‘Desperate Push’
The decision reflects growing concern within the administration over the escalating energy crisis, CNN reported.
According to CNN, officials described an increasingly constrained policy environment, with one key assessment noting that the administration is “running out of options to contain the skyrocketing price of oil and gas.”
The report characterized the situation as a major disruption, quoting former US energy official Neelesh Nerurkar as saying that “this is the biggest disruption to the oil markets that you can imagine.”
Despite releasing strategic reserves, easing sanctions on Russian oil, and increasing domestic production, these measures have had a limited impact on prices.
“The shortfall is so large that the measures available are dwarfed by how much oil is not reaching the market,” Nerurkar added.
The temporary lifting of sanctions on Iranian oil reflects what CNN described as a “desperate push to secure every available barrel of oil,” even as the US continues military operations against Iran.
The policy shift highlights a growing contradiction at the heart of US strategy. While Washington seeks to weaken Iran militarily, it is simultaneously allowing Iranian oil to enter global markets. As one official familiar with internal discussions told CNN: “Iran was going to sell those barrels anyway.”
US officials argue that redirecting these supplies to allied markets rather than China could help mitigate immediate shortages.
At the same time, the measure underscores the economic pressure exerted by Iran’s actions, particularly the disruption of traffic through the Strait of Hormuz, a critical artery for global energy supplies.
US Ambassador to the United Nations Mike Waltz described the waiver as “very temporary” and aimed at “defeat(ing) the Iranian strategy of driving energy prices so high.”
Despite the injection of additional supply, analysts warn that the effect is likely to be short-lived. The 140 million barrels expected to enter the market represent only about one and a half days of global oil consumption, highlighting the scale of the disruption.
Energy analyst Brent Erickson told the Guardian that “if we’ve reached the point of loosening sanctions on the country we are at war with, we’re really running out of options.”
— Palestine Chronicle
