The United States has announced that it is removing its own sanctions on millions of barrels of Iranian oil and petroleum products worth billions of dollars for 30 days, as the U.S.-Israeli war on Iran continues to cause oil price and supply shocks around the world.
Treasury Secretary Scott Bessent, in a statement on Friday, March 20, evening, said the temporary authorisation applies only to sanctioned oil already in transit, not to new orders.
“Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,” Bessent said.
The secretary noted that sanctioned Iranian oil is being hoarded by China “on the cheap at present”.
He added that the United States will quickly bring approximately 140 million barrels of Iranian oil to global markets by temporarily unlocking this existing supply for the world, in turn, “expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran.”
Also Read: Trump Extends Putin’s Oil Lifeline Worth Billions, Kim Jong Un Shut
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has since issued Iran-related General License U, “authorizing the delivery and sale of crude oil and petroleum products ofIranian originn loaded on vessels as of March 20, 2026.”
Bessent added that the United States will be using the Iranian barrels against Tehran to keep the price down as the Operation Epic Fury military campaign continues.
“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.”
Iran shuts down Trump oil pla.n
The move by the U.S. Treasury Department comes just hours after Iran pushed back against U.S. efforts to stabilize global oil markets, declaring it has no surplus crude available following Washington’s earlier signal that it may release sanctioned Iranian oil stranded at sea.
Oil Ministry spokesman Saman Ghoddoosi directly challenged Secretary Bessent’s remarks on Thursday, when he initially signalled that the United States could soon allow Iranian oil cargoes to re-enter global markets.
“Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets,” Ghoddoosi said, adding that the U.S. position was “solely aimed at giving hope to buyers.”
The move by Bessent to lift sanctions on roughly 140 million barrels of Iranian oil already at sea mirrors a similar step taken by the Trump administration, which allowed the sale of Russian oil cargoes stranded at sea under a temporary 30-day waiver.
The dispute comes as tensions around the Strait of Hormuz continue to drive volatility in energy markets.
Tehran has been attacking ships that it says are linked to the United States and Israel, preventing shipments of oil and gas from transiting the Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes.
The move has, in turn, highly contributed to a sharp rise in global prices.
Also Read: Trump Signals U.S. Pullback from Iran and Hormuz Policing
At the same time, Iranian forces have expanded their response beyond maritime pressure. Two waves of drones targeted a major Kuwaiti refinery this week, triggering a fire at the Mina Al-Ahmadi facility—one of the largest in the region.
New military threats in the Gulf
Iran’s military has also issued direct warnings to regional states. In a statement carried by state media, Iranian forces said they would target the UAE’s Ras al-Khaimah if the United States or its allies attacked Iranian Gulf islands.
“We warn the United Arab Emirates… the powerful Iranian armed forces will put Ras al-Khaimah under their crushing blows,” a spokesperson said.
The warning follows an earlier incident in which UAE air defenses intercepted a drone, with debris falling in a residential area.
However, President Donald Trump has indicated the U.S. may be nearing its objectives in Iran.
In a statement on Friday, Trump said Washington is “very close” to achieving its goals and is considering “winding down” military efforts, while suggesting other nations should take responsibility for securing the Strait of Hormuz.
