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U.S. Authorizes 30-Day Sales of Iranian Oil Already at Sea to Ease Supply Shock

The temporary license is designed to unlock existing cargoes to cool prices during a Hormuz-driven squeeze without permitting new purchases or production.

Overview

  • The Treasury’s general license runs from Mar 20 to Apr 19 and covers Iranian crude and petroleum products loaded onto vessels by the cutoff.
  • Treasury Secretary Scott Bessent said the step could release roughly 140 million barrels to global markets and stressed Iran would struggle to access any proceeds.
  • Officials framed the move as market stabilization and a way to prevent a single buyer, notably China, from hoarding discounted Iranian barrels.
  • The authorization excludes transactions involving North Korea, Cuba, and Russian‑occupied parts of Ukraine, and allows activities necessary to deliver and offload eligible cargoes.
  • The action follows recent short-term easings on certain Russian shipments as prices surged with Strait of Hormuz disruptions, drawing analyst warnings about longer-term sanctions erosion even as Iran’s oil ministry claimed little surplus is left at sea.