Burdened by Blockade in Strait of Hormuz, US to Ease Sanctions on Iran

The United States is considering easing sanctions on Iranian oil stored on tankers offshore to increase global supply and pressure energy prices, said Treasury Secretary Scott Bessent on Thursday. “In the coming days, we may lift sanctions on Iranian oil at sea. The amount is around 140 million barrels,” Bessent told Fox News. He added that this volume equates to a supply for about 10 days to two weeks, depending on the calculation method. The statement comes amid escalating regional conflict since Israel and the United States launched joint strikes against Iran on 28 February, which reportedly killed around 1,300 people, including the then Supreme Leader, Ali Khamenei. In response, Iran launched drone and missile attacks on various areas and effectively closed the Strait of Hormuz, a vital global energy shipping route. The strait typically carries around 20 million barrels of oil per day and about 20% of the world’s liquefied natural gas (LNG) trade, so disruptions in the area are causing significant pressure on global energy markets. Bessent said the United States plans to utilise this Iranian oil supply to press down energy prices in the short term, for 10 to 14 days ahead “as we continue this campaign.” He stated that countries benefiting from shipping security in the strait should pay fees and taxes to Iran. According to Azis, the geographical location of the Strait of Hormuz, which channels one-fifth of the world’s oil supply, makes it the most vulnerable point in modern geopolitics.