The United States has allowed Iran to sell 140 million barrels of oil under a temporary waiver. The move aims to lower global oil prices while maintaining financial restrictions on Iran. Officials say the policy could shift oil sales toward Western markets and limit Iran’s access to revenue.
The United States has granted a temporary waiver allowing Iran to sell 140 million barrels of oil, as the Trump administration moves to ease pressure from rising global oil prices and lower gas costs.
The decision, announced Friday night, permits Iran to sell oil that has been stored on tankers. The volume, estimated at 140 million barrels, is enough to meet global oil demand for about one-and-a-half days, according to the US Energy Information Administration.
Advertisement
The United States has imposed sanctions on Iranian oil for decades. These restrictions were tightened after the Trump administration withdrew from the Iran nuclear agreement in 2018, effectively blocking Iran’s crude oil sales.
The one-month waiver comes at a time when the United States is at war with Iran. The move allows Iran to sell oil despite existing sanctions, raising concerns about the potential financial impact on the ongoing conflict involving the United States and its allies.
However, officials noted that Iran had continued selling oil despite sanctions. China remains Iran’s largest buyer, and Iranian tankers have continued to pass through the Strait of Hormuz.
Global oil prices have risen during the conflict, reaching around $110 per barrel. The administration is seeking ways to stabilise prices, including recent steps to release sanctioned Russian oil into the market.
Officials said the waiver could redirect Iranian oil sales toward Western markets instead of limiting them to China. At the same time, existing financial sanctions may restrict Iran’s ability to access revenue from these sales.
US Treasury Secretary Scott Bessent said Iran would face challenges in using the funds generated. “Iran will have difficulty accessing any revenue generated and the United States will continue to maintain maximum pressure on Iran,” he said.
The decision was supported by David Malpass, a former World Bank president and Treasury official during Trump’s first term, who described the move as “a strong economic step.”
