The US has allowed the sale of Iranian oil and petrochemical products that have been loaded onto tankers, its latest effort to counter rising oil prices due to the Middle East war.<\/p>\n
The Department of Treasury issued a general license for energy that\u2019s already on vessels as of Friday, with such purchases authorized through April 19. The measure follows similar moves for Russian oil on the water in a bid to ease an unprecedented fuel supply crunch caused by the war.<\/p>\n
For now, the vast majority of Iran\u2019s oil is bought by Chinese customers \u2014 mainly independent refiners known as teapots. While the US waiver would widen the pool of potential buyers, any new customers would still face the challenge of structuring deals while other restrictions on Iran, including its access to international financial markets, remain in place.<\/p>\n
The US and Israeli war on Iran has led to a virtual halt in shipments through the Strait of Hormuz, where 20% of global oil typically transits, with only a trickle of Iranian and Chinese tankers getting through. Brent crude prices have surged more than 50% this month, while Middle Eastern oil like Abu Dhabi\u2019s flagship Murban grade has doubled in value.<\/p>\n
The resulting spike in fuel prices for American consumers is heaping immense pressure on the US president and the Republican Party leading up to the November midterm elections. Prolonged inflationary pressures would undercut the GOP\u2019s ability to retain control of the Senate and the House, and the loss of either chamber threatens to derail Trump\u2019s ability to carry out his agenda.<\/p>\n
Read More:\u00a0US Treasury Allows More Russian Oil Sales to Help Tame Prices<\/a><\/p>\n US Treasury Secretary Scott Bessent called the Iranian oil waiver a \u201cnarrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,\u201d in a\u00a0post on X<\/a>, adding that the measure will release about 140 million barrels. He also said that Iran \u201cwill have difficulty accessing any revenue generated.\u201d<\/p>\n That 140-million-barrel number likely refers to\u00a0oil on water<\/a>. That figure probably includes cargoes in transit which may already be booked, and may not reflect actual availability. Goldman Sachs Group<\/a> Inc. estimates there are 105 million barrels of Iranian oil on water.<\/p>\n