US allows temporary sale of Iranian oil to stabilise global markets: US Treasury Secretary Scott Bessent

In a post on X, Bessent said, "Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea."

https://x.com/SecScottBessent/status/2035131840604881359

He described the move as part of a broader strategy by the administration of President Donald Trump to counter disruptions caused by Iran.

"Iran is the head of the snake for global terrorism, and through President Trump's Operation Epic Fury, we are winning this critical fight at an even faster pace than anticipated. In response to Iran's terrorist attacks against global energy infrastructure, the Trump Administration will continue to deploy America's economic and military might to maximize the flow of energy to the world, strengthen global supply, and seek to ensure market stability," he wrote.

Highlighting the rationale behind the decision, Bessent 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.

He added that the policy is limited in scope. "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, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran. In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury," Bessent wrote.

The Treasury Secretary further said that the US would continue its pressure campaign against Tehran. "This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production. Further, Iran will have difficulty accessing any revenue generated and the United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system," he stated.

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.

Emphasising domestic energy policy, he added, "President Trump's pro-energy agenda has driven U.S. 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."

The announcement comes amid heightened geopolitical tensions and concerns over disruptions to energy flows through the Strait of Hormuz, a key global shipping route. (ANI)