The United States on Friday announced a temporary lifting of sanction on Iranian oil stranded at sea in a bid to keep check over the soaring crude oil prices globally.
US Treasury Secretary Scott Bessent took to X and said that the step would free 140 million barrels of Iranian oil to global markets.
"This temporary, short-term authorisation is strictly limited to oil that is already in transit and does not allow new purchases or production," Bessent said in a long post on X.
Crude oil futures fall Rs 137 to Rs 8,734 per barrel on signs of easing supply concernsThe price of Brent crude oil has risen sharply in the last three weeks since the war began -- from $70 per barrel to $119.50 this week.
"Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea," Bessent said.
He further claimed that China is hoarding cheap sanctioned Iranian oil currently.
The step will help expand worldwide energy supply and relieve temporary pressures on supply caused by Iran, he said.
"In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury," Bessent said.
The pause on sanctions on Iranian oil that is already on ships begins immediately and ends on April 19.
Petrol prices in the US have increased from $3 a gallon before the war began to $3.99 on Saturday.
"This temporary, short-term authorisation is strictly limited to oil that is already in transit and does not allow new purchases or production," Bessent said, adding that Iran will not generate much revenue out of this and that the US will continue to maintain maximum pressure on Iran and its ability to access the international financial system.
At present, 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, the US official said.
At the White House on Friday, Trump said he was not looking at a ceasefire with Iran.
"Well, look, we can have dialogue, but I don't want to do a ceasefire. You know, you don't do a ceasefire when you're literally obliterating the other side. We're not looking to do that," the US President said.