US authorizes 30-day window for Iranian oil sales at sea amid supply concerns

The US Treasury Department on Friday issued a general license temporarily lifting sanctions on Iranian oil at sea for 30 days to address the supply shortage amid shipping interruptions in the Strait of Hormuz.

The general license, issued by the department's Office of Foreign Assets Control, authorized the delivery and sales of crude oil and petroleum products of Iranian origin loaded on vessels as of Friday.

The waiver will bring some 140 million barrels ‌of oil to global markets and help relieve pressure on energy supply, said US Treasury Secretary Scott Bessent in an X post on Friday.

"This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production," Bessent noted.

Transactions authorized by this general license include the importation into the United States of crude oil and petroleum products of Iranian origin.

The move ​is also expected to benefit Asia, the top buyer of Middle Eastern oil. Energy Secretary Chris Wright said supplies could get to Asia within three or four days and hit the market after ​being refined over the coming month and a half.

This is the third time the Treasury Department has temporarily waived sanctions on oil from US adversaries in a little more than ​two weeks. Washington has already eased sanctions on Russian and Venezuelan oil in addition to the coordinated release of emergency oil reserves under the umbrella of the International Energy Agency.

The moves are part of the administration's attempts to tame energy prices that have soared above $100 a barrel to the highest levels since 2022.

The ongoing war involving the United States, Israel and Iran has lasted three weeks, severely disrupting shipping through the Strait of Hormuz, as oil shipments through the strait have fallen to less than 10% of pre-conflict levels.

Oil prices have jumped about 50% since the US and Israel launched their attacks on February 28. 

In its effort to tame oil prices, the Trump administration on Wednesday announced a 60-day waiver of the ​Jones Act shipping law, temporarily allowing foreign-flagged vessels to move fuel, fertilizer and other goods between US ports.

(With input from agencies)