Temporary waiver aims to ease supply crunch and cool surging crude markets amid escalating Middle East tensions…
In a rare policy shift, the United States Department of the Treasury has issued a general license allowing the sale of Iranian oil and petrochemical products, in a bid to calm rapidly rising global energy prices.
The move, announced under the administration of Donald Trump and reported by Bloomberg, is designed as a short-term intervention to stabilise oil markets strained by ongoing geopolitical tensions involving Iran.
According to officials, the waiver permits the sale of Iranian oil that had already been loaded onto vessels before 12:01 a.m. New York time on Friday. The authorization will remain in effect until April 19, creating a limited window for previously stranded supplies to enter the global market.
US authorities described the measure as carefully targeted aimed at easing supply pressures without fully lifting sanctions on Iran.
Treasury Secretary Scott Bessent said the decision represents “a narrowly tailored, short-term authorization” intended to release oil stuck at sea. He noted that the move could inject as much as 140 million barrels into global supply, while adding that Iran is unlikely to gain significant financial benefit from the sales due to ongoing restrictions.
The intervention comes at a critical moment for global energy markets. Crude prices have surged sharply in recent weeks, driven by escalating conflict involving the United States, Israel, and Iran, which has disrupted key supply routes and heightened fears of a prolonged energy crisis.
One of the most affected routes is the Strait of Hormuz, a strategic chokepoint responsible for roughly 20% of global oil transit. Ongoing disruptions in the area have significantly tightened supply, pushing prices upward.
In response, Washington has rolled out a series of measures aimed at containing the fallout. These include the release of more than 45 million barrels from strategic reserves and temporary adjustments to shipping regulations to reduce logistics costs.
The waiver for Iranian oil mirrors earlier steps taken to ease restrictions on Russian crude during previous supply shocks, highlighting the scale of intervention now required to stabilise markets.
Despite these efforts, oil prices remain elevated. Brent crude oil recently climbed above $112 per barrel its highest level since mid-2022 before showing slight signs of easing after signals that the US may scale back military operations.
The stakes are also political. Rising fuel prices are adding pressure on the US government ahead of key elections, as inflation concerns grow and consumers feel the pinch at the pump.
Beyond the United States, the ripple effects are being felt globally. In Nigeria, higher crude prices are translating into increased fuel costs, intensifying pressure on households and businesses. Industry stakeholders, including the Petroleum Products Retail Outlets Owners Association of Nigeria, have urged the government to channel gains from the oil price surge into long-term investments, particularly in gas infrastructure.
As tensions persist and supply routes remain vulnerable, the latest US move underscores a delicate balancing act trying to cool overheated markets without losing leverage in a high-stakes geopolitical standoff.
