The United States has eased sanctions on a portion of Iranian oil in an effort to reduce the fallout from the conflict in the region on global energy markets.
Treasury Secretary Scott Bessent announced a narrowly tailored, shortterm authorization that allows the sale of Iranian crude and petroleum products currently stranded on vessels at sea. According to the Treasury Department, the authorization will remain in effect until April 19.
Bessent said the decision is expected to quickly release about 140 million barrels of oil into global markets, helping to ease supply pressures.
Before the recent conflict, China was the main purchaser of Iranian crude, buying the oil at significant discounts due to longstanding sanctions imposed by the United States and other countries.
Markets reacted sharply to rising tensions earlier in the week. The price of Brent crude briefly climbed to as high as $119 per barrel, and European gas prices surged by up to 35 per cent on Friday after Iran launched missile attacks on Qatar’s Ras Laffan energy hub and other oil and gas infrastructure in the Middle East.
