US Removes Sanctions On Iranian Oil Stranded At Sea To Boost Overall Supply

On Thursday, Scott Bessent told Fox News that the US is considering unsanctioning Iranian oil, thereby making the 140 million barrels stuck on Iranian tankers, available to any buyer in the world and not just China, to ease the supply-chain bottlenecks that emerged after the Strait of Hormuz was blocked. In doing so, another formerly sanctioned US nemesis would be allowed free access to global markets, after Russia received a similar “temporary” permit a week earlier. 

“In the coming days we may unsanction Iranian oil that’s on the water, about 140 million barrels,” he said on Fox Business, adding that “In essence, we will be using the Iranian barrels against the Iranians to keep the price down for the next 10 or 14 days, as we continue this campaign.”

🚨 WOW! Treasury Sec. Scott Bessent just announced plans to use Iran’s own oil AGAINST THEM

The strategy: un-sanction 140 million Iranian barrels already on the water, and UNLEASH 10-14 days of supply

“We’d be using the Iranian barrels AGAINST the Iranians to keep the price… pic.twitter.com/zY84IDzTJ4

— Eric Daugherty (@EricLDaugh) March 19, 2026

Just one day later, the idea moved from concept to reality when late on Friday, the US Treasury announced it had eased oil sanctions on Iran, including permitting the sale of Iranian crude and refined products into the United States, when it issued a general license for energy that’s already on vessels as of Friday, with such purchases authorized through April 19. The measure follows similar moves for Russian oil on the water in a bid to ease an unprecedented fuel supply crunch caused by the war.

BREAKING: US Treasury eases oil sanctions on Iran, including permiting the sale of Iranian crude and refined products into the United States.

Scott Bessent calls it a “narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea.” pic.twitter.com/ANNjqpSHm9

— Javier Blas (@JavierBlas) March 20, 2026

US Treasury Secretary Scott Bessent called the Iranian oil waiver a “narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,” in a post on X, adding that the measure will release about 140 million barrels. He also said that Iran “will have difficulty accessing any revenue generated.”

Iran is the head of the snake for global terrorism, and through President Trump’s Operation Epic Fury, we are winning this critical fight at an even faster pace than anticipated. In response to Iran’s terrorist attacks against global energy infrastructure, the Trump…

— Treasury Secretary Scott Bessent (@SecScottBessent) March 20, 2026

For now, the vast majority of Iran’s oil is bought by Chinese customers, mainly independent refiners known as teapots. While the US waiver would widen the pool of potential buyers, any new customers would still face the challenge of structuring deals while other restrictions on Iran, including its access to international financial markets, remain in place.

Iran disputed the figure, with oil ministry spokesman Saman Ghodousi saying on X that the nation has no floating crude, nor a surplus that’s available for international markets. Ghodousi said the US was simply trying to provide psychological support to the oil market.

In the US, Congressional Democrats slammed the measure, arguing Trump’s move is an economic gift to Iran in the middle of a war that the president started.

“Clown show doesn’t begin to describe it,” Virginia Democrat Don Beyer said in a post on X.

In addition to sanctions waivers, the Trump administration released more than 45 million barrels of oil from its strategic reserves and temporarily waived a century-old shipping mandate in order to lower transport costs.

Brent crude settled Friday above $112 a barrel, the highest level since mid-2022, before easing in post-settlement trading after Trump said he was considering “winding down” US military efforts against Iran.