WASHINGTON — In a strategic move to stabilize reeling global energy markets, the Trump administration on Friday issued a temporary 30-day sanctions waiver for Iranian oil currently at sea. The decision, announced by Treasury Secretary Scott Bessent, aims to inject approximately 140 million barrels of crude into the market as the U.S.-Israeli military campaign, “Operation Epic Fury,” enters its fourth week.
The waiver, effective from March 20 to April 19, 2026, allows for the sale and delivery of Iranian crude and petroleum products that were already loaded onto vessels as of Friday.
Using Tehran’s Oil Against Itself
Treasury Secretary Scott Bessent framed the move as a tactical maneuver to counteract the supply squeeze caused by the ongoing conflict and Iran’s recent efforts to block the Strait of Hormuz.
“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 stated via X. “In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury.”
Key Details of the Sanctions Waiver
The administration emphasized that this is a “narrowly tailored” authorization rather than a broad lifting of sanctions. Key constraints include:
- No New Production: The license applies strictly to “stranded” oil already in transit; it does not authorize new drilling or future purchases.
- Financial Restrictions: The Treasury maintains that Iran will have significant difficulty accessing any revenue generated, as “maximum pressure” on their access to the international financial system remains in place.
- Third Waiver in Two Weeks: This follows similar recent moves to ease sanctions on Russian oil as the White House scrambles to lower domestic gas prices, which have surged toward $4 per gallon.
Market Reaction and Conflict Context
The global energy landscape has been in turmoil since the start of Operation Epic Fury on February 28, which saw coordinated U.S. and Israeli strikes against Iranian military infrastructure and leadership. In retaliation, Iran’s disruption of shipping routes in the Persian Gulf has removed roughly 10 million to 14 million barrels per day from the physical market, pushing Brent crude above $110 per barrel.
While critics have called the move “bananas,” arguing it could indirectly fund the Iranian war effort, the administration insists the priority is protecting American consumers and global allies from an “unprecedented energy crisis” ahead of the November midterm elections.
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