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Thu, 19 Mar 2026

Thu, 19 Mar 2026 US considers lifting sanctions on some Iranian oil

Treasury Secretary Scott Bessent broached waiving sanctions on oil already at sea, which would be a stunning reversal of longstanding American policy.
The US Treasury Department has proposed lifting sanctions on some Iranian oil, aiming to increase global oil supply and ease pressure on energy markets affected by the Iran war. The idea, floated by Secretary Scott Bessent in a Fox Business interview, would allow existing Iranian oil shipments to reach their destinations without being blocked by US sanctions. However, experts have raised concerns that this move could actually benefit the Iranian regime, allowing it to sell more oil and potentially fund its military efforts. "This is bananas," said David Tannenbaum of Blackstone Compliance Services. "We're essentially allowing Iran to sell oil, which would then be used to fund the war effort." The proposal would also likely have a limited impact on global energy prices, as the amount of Iranian oil affected by sanctions is relatively small compared to overall demand. The US has been trying to boost supply in other ways, including releasing millions of barrels of oil reserves and suspending some Russian oil sanctions. China, which was previously the primary buyer of Iranian oil, would likely be forced to pay "market price" if sanctions are lifted, while India, Japan, and Malaysia could potentially receive more oil. However, experts say it's unclear how a waiver would work and whether rules could be put in place to prevent money from flowing back to the Iranian government. The proposal comes as energy prices continue to rise due to the Iran war and other supply disruptions. The Strait of Hormuz, which connects the Middle East to global oil markets, has seen a significant decline in shipping activity since the conflict began.