US temporarily eases sanctions on Iranian oil

Donald Trump’s administration on Friday temporarily eased sanctions on the purchase of Iranian crude transported by sea for 30 days. The aim is to contain the surge in oil prices following the US–Israeli military conflict with Iran. According to Treasury Secretary Scott Bessent, the move could bring around 140 million barrels to the market and ease pressure on energy supplies.

It is the third such easing in a short period. Washington is responding to concerns over the economic impact of high energy prices, particularly in the run-up to the November elections. Although the US has not imported Iranian oil for years, the measure may support Asian markets, especially China, its main customer.

Oil prices have risen by about 50 per cent since the attacks began in late February. The situation has been compounded by infrastructure disruptions and the effective closure of the Strait of Hormuz, a key route for roughly a fifth of global oil and gas supplies.

Analysts warn that without a resumption of navigation through the strait, the effects will remain limited and the US could exhaust its economic levers. The administration, however, maintains that Iran’s access to revenue will be constrained and that pressure on the regime will continue.

(reuters, lud)