The U.S. Treasury Department has temporarily authorized the purchase of Iranian oil “stranded” at sea, Treasury Secretary Scott Bessent said in part on X Friday, as the Trump administration moved to lighten energy supply pressure that has continued to intensify since U.S. and Israeli troops launched the war on Iran.
Newsweek reached out to the Treasury via email for comment on Friday night.
Why It Matters
Shipping slowdowns and heightened risks in the Persian Gulf’s Strait of Hormuz—through which roughly one-fifth of global oil typically transits—have driven prices higher, with Brent crude holding above $108 per barrel as the war in Iran enters its fourth week, heightening pressure on governments to stabilize markets.
Spikes in oil and gas prices along with threats to energy infrastructure across the region underscore how securing the strait and nearby facilities has become central to both the war’s trajectory and its global economic fallout.
According to AAA on Friday, the average cost of regular at the pump is $3.912 and diesel is $5.159.
What To Know
CBS News reported the sanctions license, which notes that the timeframe for the sales began at 12:01 a.m. ET Friday and is authorized through 12:01 a.m. ET April 19. The start was predicated on whether a ship was already loaded with oil by that time.
Bessent added in his post in part, “This temporary, short-term authorization 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.”
The license does not authorize “Any transaction involving a person located in or organized under the laws of” North Korea, Cuba, or Russian-occupied parts of Ukraine.
What People Are Saying
Former Republican Congressman Adam Kinzinger, on X Friday: “YOU HAVE GOT TO BE JOKING We are lifting sanctions on IRAN. Tell me how this is going ‘as planned’ again please MAGA?”
Trump, on Truth Social Friday: “We are getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East with respect to the Terrorist Regime of Iran: (1) Completely degrading Iranian Missile Capability, Launchers, and everything else pertaining to them. (2) Destroying Iran’s Defense Industrial Base. (3) Eliminating their Navy and Air Force, including Anti Aircraft Weaponry. (4) Never allowing Iran to get even close to Nuclear Capability, and always being in a position where the U.S.A. can quickly and powerfully react to such a situation, should it take place. (5) Protecting, at the highest level, our Middle Eastern Allies, including Israel, Saudi Arabia, Qatar, the United Arab Emirates, Bahrain, Kuwait, and others.
“The Hormuz Strait will have to be guarded and policed, as necessary, by other Nations who use it — The United States does not! If asked, we will help these Countries in their Hormuz efforts, but it shouldn’t be necessary once Iran’s threat is eradicated. Importantly, it will be an easy Military Operation for them. Thank you for your attention to this matter! President DONALD J. TRUMP”
Bessent, in part on his post to X Friday: “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.”
What Happens Next
The license runs through April 19, after which the administration could decide to extend, modify or let the authorization expire.
