US lifts sanctions on Iranian oil amid price surge

The United States has eased sanctions on part of Iranian oil to help reduce the impact of regional conflict on global energy markets.

Scott Bessent announced a short-term, narrowly focused authorization allowing the sale of Iranian crude and petroleum products that are currently stranded on ships at sea. The authorization will remain in effect until April 19, according to the US Treasury Department.

Bessent said this move is expected to release about 140 million barrels of oil into global markets, which should help ease supply pressures and stabilize prices.

Before the recent conflict, China was the main buyer of Iranian crude, purchasing it at discounted rates due to long-standing sanctions imposed by the US and other countries.

Earlier in the week, markets reacted sharply to rising tensions. Brent crude prices briefly rose to $119 per barrel, and European gas prices surged by up to 35 percent after Iran launched missile attacks on Qatar’s Ras Laffan and other oil and gas infrastructure in the Middle East.

The temporary easing of sanctions aims to prevent further spikes in global energy prices while addressing regional supply disruptions.