Roving Periscope: The US ‘un-sanctions’ floating Iranian oil–that Tehran says ‘doesn’t exist!’

Virendra Pandit

New Delhi: To soften the global energy crisis and ensure the availability of affordable oil and gas worldwide, the US on Friday lifted sanctions on Iranian-origin crude oil at sea for a month, but Tehran said it has no floating oil anywhere!

According to media reports, the temporary US measure was expected to make available 140 million barrels of Iranian oil to global markets.

Treasury Secretary Scott Bessent said the US had temporarily lifted sanctions on the sale of Iranian oil stranded at sea so as to cool down soaring global crude prices.

“This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” Bessent said on. X (formerly Twitter).

This easing of sanctions on Iranian-origin crude oil and petroleum products, up until April 19 2026, including permitting the sale of Iranian crude and refined products into the United States, however, brought no immediate respite.

The price of Brent crude has witnessed sharp swings from about USD 70 per barrel before the US-Israel’s war against Iran began on February 28, to as high as USD 119.50 this week.

“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.

He claimed that, at present, sanctioned Iranian oil is being hoarded by China on the cheap.

By temporarily unlocking this existing supply for the world, the US will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the 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,” Bessant said.

The pause on sanctions on Iranian oil loaded on vessels began on Friday (March 20), and is set to end on April 19.

Since the Mideastern war started on February 28, petrol prices in the US increased from USD 3 a gallon to USD 3.99.

Iran will have difficulty accessing any revenue generated, and the US will continue to maintain maximum pressure on Iran and its ability to access the international financial system, he said.

So far, 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, he said.

The US Department of the Treasury’s Office of Foreign Assets Control authorized the delivery and sale of crude oil and petroleum products of Iranian-origin, which is loaded on vessels as of March 20.

It said that with certain exceptions, “All transactions prohibited by the above-listed authorities that are ordinarily incident and necessary to the sale, delivery, or offloading of crude oil or petroleum products of Iranian origin loaded on any vessel, including vessels blocked under the above-listed authorities, on or before 12:01 am eastern daylight time, March 20, 2026 are authorized through 12:01 am eastern daylight time, April 19, 2026.”

Transactions authorized by the license also include the import of Iranian-origin crude oil and petroleum products into the United States.

Bessent called it a “narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea.” Highlighting the rationale behind the decision, he noted that the measure would help ease supply pressures.

“At present, sanctioned Iranian oil is being hoarded by China on the cheap. By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets… helping to relieve the temporary pressures on supply caused by Iran,” he said.

Bessent also pointed to broader efforts to boost global energy supply.

“So far, 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,” he said.

Emphasizing domestic energy policy, he added, “President Trump’s pro-energy agenda has driven US 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.”

As the conflict continues the strategic waterway of the Strait of Hormuz remains effectively closed to most maritime traffic, continuing to pressure global energy supplies and diplomatic relations.

Iran refutes

Iran’s Oil Ministry, however, contradicted the US move to ease sanctions on Iran crude oil loaded on vessels as of March 20. In a statement, Tehran’s Consulate in Mumbai said, “At present, Iran essentially has no floating crude or surplus available for international markets. The US Treasury Secretary’s remarks appear aimed at reassuring buyers and managing market sentiment.”

This Iranian denial could further spook an already volatile market that has seen crude oil prices spike as the West Asian conflict enters its fourth week.

Trump: No ceasefire

On Friday, President Donald Trump said that the United States was considering “winding down” military operations against Iran but was not seeking a ceasefire with the Islamic Republic.

“We are getting very close to meeting our objectives as we consider winding down our great military efforts in the Middle East with the terrorist regime of Iran,” Trump said in a post on Truth Social, giving the strongest indication that he may be prepared to soon end hostilities.

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,”