On Friday, March 20, the Ministry of Finance published a license that temporarily exempts from the ban on trading oil and oil products from Iran. However, this only applies to shipments that are already in transit at the time of the license publication, excluding the possibility of new deals.
Scott Bessent, the Secretary of the Treasury, characterized this decision as "specific" and "short-term." He noted that this would allow approximately 140 million barrels of Iranian oil to enter the global market, which should help reduce the deficit and lower prices that have significantly risen due to Tehran's blockade of shipping in the Strait of Hormuz amid the ongoing conflict with the USA and Israel, which has now lasted for four weeks.
China is currently the main buyer of Iranian oil, receiving it at a reduced price, Bessent noted. "By opening temporary access to these reserves for the international market, the USA will be able to quickly bring 140 million barrels of Iranian oil to it, increasing the volume of global energy resources and helping to alleviate the supply pressure created by Iran. Thus, we will use Iranian oil against the regime in Tehran to keep prices down while continuing Operation 'Epic Fury'," he explained.
According to him, Iran will find it difficult to access revenues from oil sales, as the USA intends to continue exerting maximum pressure on Iran and limiting its access to international financial systems.
Last week, similar temporary sanctions relief measures were applied to Russian oil.
In an interview with Fox News on March 19, Bessent also mentioned the possibility of temporarily lifting restrictions on Iranian oil, emphasizing that this could help redirect oil flows from China to countries such as India, Japan, and Malaysia. It would also allow China to pay the "market price" for Iranian oil. He added that the entry of Iranian oil into the market could lower global prices for 10-14 days.
On March 19, there was a sharp rise in energy prices. On the London ICE exchange, the price of May futures for Brent crude oil exceeded $119 per barrel for the first time since March 9, as a result of Iran's attacks on energy infrastructure in the Persian Gulf and its threats of new strikes.
