The United States has partially lifted sanctions on Iranian oil in a bid to stabilise global energy markets disrupted by its ongoing conflict with Iran.
The move, announced by Treasury Secretary Scott Bessent, allows for the short-term sale of Iranian crude currently stranded at sea, marking a sharp shift from longstanding American policy.
Under the temporary authorisation, which runs until April 19, approximately 140 million barrels of oil could enter the global market.
The decision comes amid soaring energy prices triggered by the war, with Brent crude hovering around $112 per barrel—up 53% over the past year—while UK gas prices have nearly doubled.
The US hopes the measure will ease supply shortages and redirect Iranian oil exports away from China—previously the primary buyer—to other nations such as India, Japan, and Malaysia.
Bessent argued that the shift could force China to pay market rates while limiting Tehran’s access to oil revenues.
Counter-productive measure
However, the policy has sparked debate among experts. Critics warn it could inadvertently fund Iran’s war efforts.
David Tannenbaum of Blackstone Compliance Services described the strategy as counterproductive, arguing that allowing oil sales may strengthen the very regime Washington seeks to weaken.
Others question the effectiveness of the move in lowering prices.
Rachel Ziemba of the Center for a New American Security said the waiver is unlikely to be a “game changer,” noting the difficulty in ensuring that oil revenues do not reach the Iranian government.
Still, some analysts support the decision. David Malpass described it as a targeted intervention that could reduce oil prices outside China while limiting Iran’s financial gains.
The crisis has been worsened by disruptions in the Strait of Hormuz, a critical passage for global oil transport, where shipping has largely halted.
Experts estimate that the conflict has removed about 10% of global oil supply, intensifying fears of prolonged instability in energy markets.
