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Akbar Novruz

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The US Treasury on Friday temporarily lifted sanctions on Iranian oil already loaded onto vessels, in Washington’s latest effort to ease a supply crisis linked to the war in the Middle East.

The authorisation allows for the delivery and sale of Iranian crude oil and other petroleum products loaded onto ships before March 20, and will remain in effect until April 19, the Treasury said in a statement, according to Maccaubusiness.

The move by the Office of Foreign Assets Control follows a similar decision to ease restrictions on Russian oil at sea, as policymakers attempt to stabilise global energy markets.

Disruptions linked to Iran’s de facto blockade of the Strait of Hormuz, through which around 20 per cent of the world’s oil and gas normally flows, along with attacks on energy infrastructure across the region, have driven crude prices sharply higher.

Treasury Secretary Scott Bessent described the measure as a “narrowly tailored” and short-term step aligned with President Donald Trump’s intention to maximise global energy flows and maintain market stability.

“At present, sanctioned Iranian oil is being hoarded by China on the cheap,” Bessent said. “By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran.”

However, Iran rejected the suggestion that significant volumes are readily available. Oil ministry spokesman Saman Ghoddoosi said the country currently has no surplus crude oil available for international markets and described the US statement as an attempt to reassure buyers.

The Treasury noted that the authorisation does not apply to deliveries to Cuba, North Korea or Russian-occupied areas of Ukraine.

Oil markets ended higher on Friday, though prices remained below the $120 per barrel threshold that has been approached several times since the conflict began three weeks ago. Brent crude rose 3.26 per cent to $112.19 per barrel, while West Texas Intermediate gained 2.27 per cent to $98.32.