US May Ease Sanctions on Iranian Oil to Curb Surging Prices

The U.S. may soon lift sanctions on Iranian oil stranded on tankers to help reduce soaring prices due to Iran's closure of the Strait of Hormuz. This potential waiver could release about 140 million barrels into the global market, following a similar move for Russian oil.

The U.S. government is considering lifting sanctions on Iranian oil held at sea to mitigate rising oil prices, according to Treasury Secretary Scott Bessent. This move is part of Washington's strategy to address the surge caused by the closure of the Strait of Hormuz by Iran, a critical shipping lane.

Bessent announced on Fox Business Network's "Mornings with Maria" that the U.S. might allow the Iranian oil, totaling approximately 140 million barrels, to be sold. Such a decision would aim to stabilize global oil prices, which have exceeded $100 per barrel recently due to the geopolitical tension.

This potential U.S. action mirrors a recent policy allowing stranded Russian oil to enter global markets, with a similar mechanism potentially being employed to ease sanctions on Iranian oil. The decision could redirect oil initially intended for China to global buyers and alleviate pressure from the critical Strait of Hormuz, as confirmed by sources familiar with the Treasury's plan.

(With inputs from agencies.)