US Approves Sale of Stranded Iranian Oil to Curb Rising Global Energy Prices

US Approves Sale of Stranded Iranian Oil to Curb Rising Global Energy Prices

The administration of Donald Trump has approved a temporary measure allowing the sale of Iranian oil stranded at sea, as part of efforts to ease soaring global energy prices triggered by escalating tensions in the Middle East.

The authorization, announced by U.S. Treasury Secretary Scott Bessent, permits the release of an estimated 140 million barrels of Iranian crude oil already in transit or held in floating storage.

Describing the move as a “narrowly tailored short-term authorisation,” Bessent stressed that it applies only to existing shipments and does not allow new oil purchases or increased production from Iran.

“The authorisation permits the sale of Iranian oil currently stranded at sea,” he said, adding that the strategy is designed to stabilise markets without weakening broader sanctions.

Global oil markets have been rattled by supply disruptions linked to the ongoing Middle East conflict, particularly around the Strait of Hormuz, a critical shipping route for global crude exports.

Benchmark Brent crude oil surged to about $112 per barrel, while fuel prices climbed sharply in major economies, increasing inflationary pressure and raising concerns about economic stability. By unlocking stranded Iranian crude, the U.S. aims to boost global oil supply and provide immediate relief to volatile energy markets.

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Officials emphasised that U.S. sanctions on Iran remain fully in place, with measures designed to restrict Tehran’s ability to access proceeds from the oil sales. Bessent noted that Iran would face significant hurdles in accessing any revenue generated, reaffirming Washington’s commitment to maintaining maximum economic pressure. The policy has been framed as a strategic move to use available Iranian oil to counter price spikes without benefiting Iran financially.

White House spokeswoman Taylor Rogers said the administration carefully evaluated multiple options before acting to address short-term supply challenges. Energy analyst Neelesh Nerurkar described the disruption as one of the most severe in recent history, warning that the scale of lost supply may limit the effectiveness of current interventions.

“The shortfall is so large that the measures available are dwarfed by the amount of oil not reaching the market,” he said.

The move forms part of a broader U.S. strategy to stabilise global oil markets, including releases from the U.S. Strategic Petroleum Reserve, temporary easing of restrictions on select oil suppliers, and efforts to keep key maritime routes open.

While President Trump has expressed optimism that oil prices will decline once the conflict subsides, analysts warn that continued instability could sustain volatility in the near term.

The decision underscores the delicate balance between geopolitical strategy and economic necessity, as the U.S. navigates efforts to control inflation and maintain pressure on Iran. Experts caution that while the release of stranded oil may deliver short-term price relief, long-term stability will depend on resolving regional tensions and ensuring uninterrupted oil supply chains.

US Approves Sale of Stranded Iranian Oil to Curb Rising Global Energy Prices