The denial from the Iranians might additional spook an already unstable market that has seen crude oil costs spike because the West Asia battle is poised to enter its fourth week.
| Photo Credit:
Dado Ruvic
Iran’s Oil Ministry has contradicted the US transfer to ease sanctions on Iran crude oil which is loaded on vessels as of March 20. In an announcement issued by Iran’s consulate in Mumbai it was stated, “At present, Iran essentially has no floating crude or surplus available for international markets. The US Treasury Secretary’s remarks appear aimed at reassuring buyers and managing market sentiment.”
The denial from the Iranians might additional spook an already unstable market that has seen crude oil costs spike because the West Asia battle is poised to enter its fourth week. Earlier, the United States on Friday (native time) introduced short-term easing of sanctions on Iranian-origin crude oil and petroleum merchandise up till April 19 this 12 months, together with allowing the sale of Iranian crude and refined merchandise into the United States.
The particulars of the choice had been supplied by an announcement from the US Department of the Treasury’s Office of Foreign Assets Control, which authorised the supply and sale of crude oil and petroleum merchandise of Iranian-origin, which is loaded on vessels as of March 20.
The assertion famous 19 April, 2026 because the date until which the exceptions would exist on Iranian-origin crude oil and petroleum merchandise.
It stated that with sure exceptions, “All transactions prohibited by the above-listed authorities that are ordinarily incident and necessary to the sale, delivery, or offloading of crude oil or petroleum products of Iranian origin loaded on any vessel, including vessels blocked under the above-listed authorities, on or before 12:01 am eastern daylight time, March 20, 2026 are authorised through 12:01 a.m. eastern daylight time, April 19, 2026.”
The assertion famous that the transactions authorised by the license additionally embody the import of Iranian-origin crude oil and petroleum merchandise into the United States.
Earlier in a publish on X, US Treasury Secretary Scott Bessent had introduced a short lived authorisation allowing the sale of Iranian oil presently stranded at sea, aimed toward stabilising international vitality markets.
He known as it a “narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea.”
Highlighting the rationale behind the choice, Bessent famous that the measure would assist ease provide pressures.
“At present, sanctioned Iranian oil is being hoarded by China on the cheap. By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets… helping to relieve the temporary pressures on supply caused by Iran,” he stated.
He added that the coverage is restricted in scope. “At present, sanctioned Iranian oil is being hoarded by China on the cheap. By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran. In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” Bessent wrote.
The Treasury Secretary additional stated that the US would proceed its stress marketing campaign towards Tehran. “This temporary, short-term authorisation is strictly limited to oil that is already in transit and does not allow new purchases or production. Further, Iran will have difficulty accessing any revenue generated and the United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system,” he said.
Bessent additionally pointed to broader efforts to spice up international vitality provide.
“So far, the Trump Administration has been working to bring around 440 million additional barrels of oil to the global market, undercutting Iran’s ability to leverage its disruptions in the Strait of Hormuz,” he stated.
Emphasising home vitality coverage, he added, “President Trump’s pro-energy agenda has driven US oil and gas production to record levels, strengthening energy security and lowering fuel costs. Any short-term disruption now will ultimately translate into longer-term economic gains for Americans – because there is no prosperity without security.”
As the battle battle continues the strategic waterway of Hormuz stays successfully closed to most maritime visitors, persevering with to stress international vitality provides and diplomatic relations.
Published on March 21, 2026