Energy Prices Surge, US Allows Sale of Iranian Oil at Sea

The United States government has taken an unusual step by temporarily easing sanctions on Iranian oil currently at sea. This policy comes amid a surge in global energy prices due to conflicts involving the US, Israel, and Iran, as well as major disruptions to the world’s oil supply. Citing Reuters on Sunday (22/3/2026), the US Department of the Treasury has issued a short-term authorisation allowing the sale, shipment, and unloading of Iranian crude oil that was loaded onto ships before 20 March 2026. This step is estimated to open access to around 140 million barrels of Iranian oil in the global market. US Treasury Secretary Scott Bessent stated that the policy is designed to temporarily open existing supplies to the world, thereby helping to alleviate pressure on energy supplies. “By temporarily opening these existing supplies to the world, the United States will quickly bring around 140 million barrels of oil to the global market, expanding the amount of energy worldwide and helping to reduce the temporary pressure on supplies caused by Iran,” Bessent said in a statement on X. This easing of sanctions emerges as oil prices have sharply risen in recent weeks. According to a report from The Guardian, conflicts that have disrupted energy infrastructure and major shipping routes in the Middle East have driven oil prices up by more than 50 percent, breaching $100 per barrel—the highest level since 2022. These geopolitical tensions have also caused disruptions to strategic shipping routes such as the Strait of Hormuz. In this context, the US government is working to stabilise energy markets while reducing domestic economic impacts from rising fuel prices. This temporary policy is described as part of a series of measures to control energy inflation and pressures on consumers and businesses. The easing of sanctions has prompted quick responses from several refineries in Asia.