On Friday evening (March 20), the US Treasury Secretary announced that the Treasury Department has issued a short-term authorization for the sale of Iranian oil currently stranded at sea for a period of 30 days.
During military actions by the US and Israel against Iran, Iran closed the Strait of Hormuz, attacking oil tankers and neighboring countries’ crude oil facilities, leading to a surge in global oil prices.
On Friday, the US Treasury Department issued a general license allowing the sale of Iranian oil and petrochemical products loaded onto ships before 12:01 a.m. Friday in New York time. This move is the latest measure taken by the Trump administration to address the rising oil prices due to the war.
The announcement was made by the Secretary on the social media platform X. He stated that Iran is the mastermind behind global terrorism and through President Trump’s “Epic Wrath Action,” the US is swiftly winning this crucial battle. To counter Iran’s terrorist attacks on global energy infrastructure, the Trump administration will continue to utilize US economic and military power to maximize the safeguarding of global energy supply, strengthen it, and strive to ensure market stability.
He specifically mentioned China’s exploitation of Western countries’ sanctions against Iran for profit. The Treasury Secretary stated that currently, sanctioned Iranian oil is being hoarded at low prices by China (the CCP). “By temporarily releasing these existing supplies, the US will rapidly ship approximately 140 million barrels of oil to the global market, increase the global energy supply, and help alleviate the temporary supply pressure caused by Iran.”
“Essentially, we will use Iran’s oil supply to suppress the Tehran regime, thereby lowering oil prices as the ‘Epic Wrath Action’ continues to advance,” he said.
The authorization allows for the sale of such products until 12:01 a.m. on April 19 in New York time. Previously, the US government had taken similar measures, allowing the sale of Russian oil stranded on tanker due to sanctions to increase oil supply.
The temporary short-term authorization strictly limits oil that is already in transit and does not allow for the purchase of new or produced crude oil. Furthermore, Iran will find it difficult to gain any revenue from this, as the US will continue to exert maximum pressure on Iran and its ability to enter the international financial system.
Global benchmark crude prices closed above $112 per barrel on Friday, hitting the highest level since mid-2022. However, in post-settlement trading, oil prices dipped slightly as US President Trump stated that he is considering “gradually reducing” US military actions against Iran.
The Secretary emphasized that thus far, the Trump administration has been working to send an additional approximately 440 million barrels of oil to the global market, weakening Iran’s ability to achieve its goals using its interference in the Strait of Hormuz.
Furthermore, President Trump stated on Friday that China, Japan, and NATO allies should assist in reopening the Strait of Hormuz, as Iran’s threats have effectively stalled passage through the strait.
“If countries using the strait, including China, can get involved, that would be great,” Trump said while boarding Marine 1 helicopter to leave the White House for the weekend.
“We don’t use the Strait of Hormuz,” Trump said. “We don’t need it. Europe needs it. South Korea, Japan, China, and many other countries need it, so they have to make some contributions in this regard.”
Regarding the current situation in Iran, Trump added, “From a military standpoint, all they’re doing is blocking the strait.”
The President also said from a military standpoint, “they’re done.”