The administration of Donald Trump has temporarily relaxed sanctions on Iran’s oil exports, allowing purchases at sea for 30 days in an effort to contain surging global energy prices driven by the ongoing U.S.-Israeli conflict.
Treasury Secretary Scott Bessent said the waiver could inject about 140 million barrels of crude into global markets, offering short-term supply relief after oil prices climbed roughly 50% since the war began on February 28.
“In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury,” Bessent said, framing the move as a tactical adjustment rather than a shift in broader policy.
The license, posted by the Treasury Department, allows Iranian crude already loaded onto vessels to complete its sale or delivery, including potential import into the United States, though such imports remain unlikely given decades of sanctions dating back to the 1979 revolution. The waiver excludes jurisdictions such as Cuba, North Korea, and Crimea and will run until April 19.
It marks the third sanctions reprieve in just over two weeks, following similar steps to allow the movement of stranded Russian oil and earlier Iranian shipments. The administration has also eased domestic shipping restrictions under the Jones Act to allow foreign-flagged vessels to move fuel between U.S. ports, underscoring the urgency of containing price pressures.
The immediate impact is expected to be felt most in Asia, where refiners, particularly independent Chinese operators, have long been the primary buyers of discounted Iranian crude. Energy Secretary Chris Wright said supplies could reach Asian markets within days and filter into refined products over the next several weeks.
Still, the intervention highlights the limits of economic tools in a conflict-driven market. Much of the price surge has been tied not simply to supply constraints but to heightened geopolitical risk, including attacks on energy infrastructure and disruptions to shipping through the Strait of Hormuz, a corridor responsible for roughly a fifth of global oil and liquefied natural gas flows.
Analysts say that unless those risks are removed, additional barrels alone are unlikely to produce sustained price relief. Brett Erickson of Obsidian Risk Advisors warned that loosening sanctions during an active conflict signals diminishing policy options.
“If we’ve reached the point of loosening sanctions on the country we are at war with, we’re really running out of options,” he said.
Economists broadly share that assessment. While the waiver may temper prices briefly, potentially for a window of 10 to 14 days, as Bessent suggested in earlier remarks, structural stability in energy markets depends on a cessation of hostilities. As long as the conflict continues, traders are likely to price in the risk of further supply disruptions, keeping crude elevated regardless of incremental supply increases.
The administration has attempted to balance two competing pressures: maintaining maximum economic pressure on Iran while shielding U.S. consumers from the inflationary fallout of the war. Bessent insisted Tehran would struggle to access any proceeds from the oil sales, saying Washington would continue to restrict Iran’s access to the international financial system.
Yet the policy carries contradictions since allowing Iranian oil to flow, even temporarily, introduces additional supply that indirectly benefits Tehran’s export position, even if revenues are constrained. At the same time, the move underscores growing concern within the White House about the domestic political cost of high energy prices ahead of the November midterm elections, when Republicans are seeking to maintain control of Congress.
The near-closure of the Strait of Hormuz, combined with repeated strikes on oil and gas facilities across Iran and neighboring Gulf states, continues to overshadow supply-side interventions. Insurance costs for tankers have risen sharply, and shipping disruptions have tightened available flows regardless of official policy changes.
Supporters of the waiver believe it is a pragmatic step. Mark Dubowitz said the move could help “win the fight against the regime” while easing price pressure. But even proponents acknowledge its limits in the absence of broader de-escalation.
The underlying dynamic remains unchanged. The war has introduced a risk premium into energy markets that cannot be legislated away. Until the conflict between the U.S., Israel, and Iran subsides, or a durable security arrangement restores confidence in supply routes, oil prices are likely to remain volatile.






