US Temporarily Lifts Sanctions on Iranian Oil Amid Rising Tensions

The United States has temporarily lifted sanctions on 140 million barrels of Iranian oil currently at sea, aiming to stabilize soaring global oil prices. Treasury Secretary Scott Bessent announced the decision, emphasizing that the suspension is "very temporary" and intended to counteract Iran's strategy of driving energy prices higher.

This move follows Iran's recent missile attack on the Diego Garcia military base, a joint U.S.-U.K. facility in the Indian Ocean. According to a U.S. official, Iran launched two intermediate-range ballistic missiles at the base on Friday morning local time; neither missile struck the base. The U.K. Defense Ministry condemned the attack, stating that "Iran's reckless attacks, lashing out across the region and holding hostage the Strait of Hormuz, are a threat to British interests and British allies."

In response to the escalating conflict, Israeli Defense Minister Israel Katz announced plans to significantly increase attacks on Iran. He stated, "This week, the intensity of the strikes that the Israel Defense Forces and the U.S. military will carry out against the Iranian terror regime and the infrastructure it relies on will increase significantly."

Despite these developments, President Donald Trump indicated he is considering "winding down" U.S. military operations in the Middle East. However, thousands more U.S. Marines and sailors are being deployed to the region as the conflict with Iran enters its fourth week.

The temporary easing of sanctions on Iranian oil is part of broader efforts to mitigate the economic impact of the conflict, which has led to a sharp increase in global oil prices. Analysts suggest that allowing the sale of Iranian oil already at sea could help cool crude oil prices that have risen sharply since tanker traffic through the Strait of Hormuz was severely curtailed at the outset of the conflict.