The administration of Donald Trump announced a temporary relaxation of sanctions on Iranian oil, allowing its sale at sea for 30 days. The move, announced on Friday, 20th March, is aimed at bringing down rising global oil prices, which have surged due to the ongoing US-Israel conflict with Iran.
According to media reports, this decision could release around 140 million barrels of oil into the global market, helping ease supply pressure.
Move to increase global oil availability
US Treasury Secretary Scott Bessent said the step is part of a broader effort to stabilise energy markets. “Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea,” he said.
He added that much of this oil had been sitting unused, with countries like China buying it at lower prices. By allowing this stock to enter the global market, the US hopes to quickly improve supply and control price spikes.
“In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” Bessent said.
Background: Ongoing conflict and oil disruptions
The move comes amid rising tensions in the Middle East after the US and Israel launched military strikes on Iran under what has been described as Operation Epic Fury on 28th February. The strikes triggered retaliation from Iran, leading to disruptions in key energy routes, including the Strait of Hormuz.
Bessent strongly criticised Iran, saying, “Iran is the head of the snake for global terrorism… the Trump Administration will continue to deploy America’s economic and military might to maximise the flow of energy to the world.”
Iran is the head of the snake for global terrorism, and through President Trump’s Operation Epic Fury, we are winning this critical fight at an even faster pace than anticipated. In response to Iran’s terrorist attacks against global energy infrastructure, the Trump…
— Treasury Secretary Scott Bessent (@SecScottBessent) March 20, 2026
Limited relief, continued pressure on Iran
The US has clarified that the relaxation is only temporary and comes with strict conditions. The authorisation applies only to oil that is already in transit and does not allow any new purchases or production.
“This temporary, short-term authorisation is strictly limited… and does not allow new purchases or production,” Bessent said, adding that Iran will still face financial restrictions and limited access to the revenue generated.
Officials said the US has already taken steps to bring nearly 440 million additional barrels of oil into the global market in recent weeks. The aim is to ensure stable energy supplies while continuing economic pressure on Iran.
