U.S. Authorizes Temporary Sale of Iranian Oil to Mitigate Fuel Price Surge

The U.S. Treasury Department has issued a general license allowing the sale of Iranian crude oil and petroleum products that were already loaded on vessels as of Friday. This authorization is valid until April 19, 2026, and is intended to ease the unprecedented fuel supply crunch caused by the ongoing conflict.

Treasury Secretary Scott Bessent described the license as a "narrowly tailored, short-term authorization" that will release approximately 140 million barrels of oil. He noted that Iran "will have difficulty accessing any revenue generated" from these sales.

The majority of Iran's oil is currently purchased by Chinese customers, primarily independent refiners known as "teapots." While the U.S. waiver expands the pool of potential buyers, new customers may face challenges structuring deals due to existing restrictions on Iran, including limited access to international financial markets.

The conflict has led to a significant reduction in shipments through the Strait of Hormuz, a critical passage for global oil transit, with only limited Iranian and Chinese tankers navigating the route. As a result, Brent crude prices have surged over 50% this month, and Middle Eastern oil grades like Abu Dhabi's Murban have doubled in value.

In response to escalating fuel prices, the Trump administration has also released more than 45 million barrels of oil from the Strategic Petroleum Reserve and temporarily waived the Jones Act, a century-old shipping mandate, to lower transport costs.

Iranian officials have disputed the U.S. figures, with oil ministry spokesman Saman Ghodousi stating that the nation has no floating crude or surplus available for international markets. Ghodousi suggested that the U.S. announcement aims to provide psychological support to the oil market.

Some U.S. lawmakers have criticized the measure. Virginia Democrat Don Beyer commented, "Clown show doesn't begin to describe it."