140 Million Barrels: US Approves Sale of Stranded Iranian Crude Oil to Ease Rising Global Prices
by Victor Enengedi, https://www.facebook.com/legitngnews · Legit.ng News · Join- The US is temporarily allowing the sale of Iranian oil already stranded at sea, while banning any new purchases or production
- The move is expected to release about 140 million barrels into global markets to ease supply shortages and stabilise rising prices
- The decision comes amid disruptions to key routes which have contributed to reduced oil flows and increased global energy costs
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The United States has issued a temporary and narrowly defined authorization allowing the sale of Iranian crude oil currently stranded on vessels at sea.
According to a statement released on Saturday by Scott Bessent, the measure applies strictly to Iranian-origin oil and petroleum products that have already been loaded onto ships, with no approval for new transactions or production.
He said:
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“Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea.
“This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production."
Bessent emphasized that the decision is designed to address immediate supply constraints in global energy markets without relaxing broader sanctions on Iran.
Effort to Stabilize Global Oil Supply
US officials estimate that the move could release roughly 140 million barrels of oil into the global market.
Analysts note that this volume represents a significant short-term supply boost, especially at a time when geopolitical tensions have disrupted key shipping routes.
Bessent also pointed out that large volumes of sanctioned Iranian oil have been accumulating, particularly in China, where discounted purchases have continued despite restrictions.
By allowing these existing shipments to enter the market, the US aims to ease supply shortages and moderate rising prices.
The policy comes amid broader efforts by Washington to increase global oil availability.
According to the Treasury, the administration has already facilitated the introduction of approximately 440 million additional barrels into the market through various measures, including increased domestic production.
Shipping Disruptions and Rising Oil Prices
Recent instability in the Middle East has significantly affected global energy logistics. Critical maritime routes such as the Strait of Hormuz and the Suez Canal have experienced disruptions due to escalating conflict.
On March 2, several major container shipping companies suspended operations through these routes, citing security concerns.
This development has had a pronounced impact on oil flows. Data from the International Energy Agency indicates that crude shipments through the Strait of Hormuz dropped sharply—from around 20 million barrels per day before the conflict to significantly lower levels in recent weeks.
As a result of these supply constraints, global oil prices have surged, reaching approximately $112 per barrel. Energy economists highlight that the Strait of Hormuz alone typically handles about one-fifth of the world’s oil consumption, making any disruption there particularly consequential.
Continued Pressure on Iran’s Economy
Despite the temporary authorization, US officials insist that sanctions on Iran remain firmly in place. Bessent noted that Tehran is expected to face ongoing challenges in accessing revenues generated from the oil sales, as restrictions on its financial transactions persist.
The policy is part of a broader US strategy aimed at limiting Iran’s ability to leverage its energy exports for geopolitical influence, particularly in sensitive regions like the Gulf.
Officials argue that maintaining pressure on Iran’s financial system while stabilizing global oil markets strikes a necessary balance between economic and security priorities.