Bessent says US temporarily lifting sanctions on Iranian oil stranded at sea

Treasury Secretary Scott Bessent said Friday the United States has temporarily lifted sanctions on Iranian oil that is currently stranded in the ocean, which is expected to bring millions of barrels of oil to global markets. 

The Trump administration imposed wide-reaching sanctions on Iranian oil as part of a maximum pressure campaign against the Middle Eastern country. The U.S. said Iran's regime uses money from the oil sales to fund its "malign activities."

The decision to temporarily pause the sanctions on Iranian oil that is stranded at sea comes as the U.S. is engaged in a conflict with the Middle Eastern country, alongside Israel.

"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 on X. 

"At present, sanctioned Iranian oil is being hoarded by China on the cheap," he continued. "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."

Bessent clarified that the order only impacts Iranian oil that is already in transit and does not allow for new purchases or production, and said Iran will not receive the revenue from the oil.

"In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury," Bessent said. "President Trump’s pro-energy agenda has driven U.S. 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," he added.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.