US Opens Iranian Oil Tap for a Month, Supply Not Guaranteed to Flow

The United States government has reopened access for Iranian oil to the global market, but only for a limited time. This policy applies for around 30 days and focuses on oil already at sea. Through authorisation from the US Department of the Treasury, Iranian crude oil loaded onto ships before 20 March 2026 may now be sold, shipped, and unloaded until 19 April 2026. This step is estimated to unlock access for around 130 million to 140 million barrels of oil to the global market, an additional supply hoped to alleviate the surge in energy prices. “Essentially, we are utilising Iranian oil to suppress prices, while continuing military operations,” he stated. This policy emerges amid a sharp spike in global oil prices due to conflicts in the Middle East involving the US, Israel, and Iran. In recent weeks, oil prices have risen more than 50 percent, breaking through $100 per barrel, the highest since 2022. This surge was triggered by disruptions to energy infrastructure and major distribution routes, particularly the Strait of Hormuz—a vital route through which around 20 percent of global oil and gas supplies pass. Disruptions in that route have caused supply bottlenecks and raised concerns about a broader energy crisis. The US continues to restrict Iran’s access to the international financial system. This means payments for oil sales remain difficult, reducing the appeal of transactions for buyers. Several analysts assess that without clear payment mechanisms, this policy will have only limited impact on actual export increases. Amid these limitations, the easing of sanctions has immediately drawn market attention, particularly in Asia. Several refineries in India and other Asian countries have begun evaluating the possibility of resuming purchases of Iranian oil to address dwindling supplies.