U.S. Treasury Authorizes Limited Sale of Iranian Oil Amid Energy Market Disruptions

ERBIL (Kurdistan24) - U.S. Treasury Secretary Scott Bessent announced Saturday that Washington will issue a temporary authorization allowing the sale of Iranian oil currently stranded at sea, in a move aimed at stabilizing global energy markets amid disruptions linked to ongoing regional conflict.

In a statement posted on X on Saturday, Bessent said the authorization would apply only to existing Iranian oil shipments already in transit and would not permit new production or purchases. The measure is intended to release approximately 140 million barrels of oil into global markets, according to the statement.

“Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,” Bessent said, adding that the step is designed to “maximize the flow of energy to the world, strengthen global supply, and seek to ensure market stability.”

The announcement comes amid ongoing disruptions to energy flows, particularly in and around the Strait of Hormuz, where tensions have escalated in recent weeks. U.S. officials have linked these disruptions to attacks on energy infrastructure, which Bessent attributed to Iran in his statement.

The authorization, he said, would allow the United States to “quickly bring approximately 140 million barrels of oil to global markets,” with the stated goal of alleviating short-term supply pressures. Bessent also noted that the measure is part of a broader effort by the administration to counter market instability during the current conflict.

According to the statement, the oil covered under the authorization is already in transit, with significant quantities reportedly being held in storage or awaiting delivery. Bessent said that some of the sanctioned oil had been “hoarded by China on the cheap,” and that unlocking these volumes would expand available supply globally.

He emphasized that the authorization is temporary and limited in scope, stating that it “does not allow new purchases or production.” He also added that Iran would face constraints in accessing revenue generated from the sales, as the United States would continue to maintain restrictions on Iran’s access to the international financial system.

Bessent linked the policy to broader U.S. efforts to manage global energy supply, saying the administration had already worked to introduce approximately 440 million additional barrels of oil into the market through various measures. These efforts, he said, were intended to counter disruptions and reduce Iran’s leverage over shipping routes.

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…

— Treasury Secretary Scott Bessent (@SecScottBessent) March 20, 2026

In remarks reported in a Fox News interview on Friday, Energy Secretary Christopher Wright provided further details on the expected impact and timeline of the policy. He said that much of the oil currently in transit could begin reaching markets within days of the authorization being implemented.

“With unsanctioning, within days, within three or four days, that oil will start to arrive at ports,” Wright said during the interview, adding that refineries located near ports would be able to process the shipments quickly.

Wright indicated that most of the oil would likely be absorbed into global markets within 30 to 45 days. He noted that existing shipments had been largely destined for China, where they were awaiting unloading or storage, and that the policy would redirect some of those supplies to other markets.

“This is a way to let those barrels flow into India or Vietnam or Indonesia, somewhere else where those barrels will get refined and supply the products needed in Asia,” Wright said.

The Energy Secretary also said that the measure is part of a broader strategy to offset supply disruptions through multiple channels, including increased U.S. production, coordinated international releases of strategic reserves, and the use of existing oil stocks.

“We have an interruption of oil flows, and we want to fill it every way we can,” Wright said, referencing the combination of domestic production, strategic reserves, and global coordination.

Wright also confirmed that more than 30 countries have participated in coordinated efforts to release oil into the market to address supply shortages. He said these measures are intended to mitigate the impact of reduced flows through key transit routes, including the Strait of Hormuz.

The policy has drawn attention to the balance between maintaining pressure on Iran and addressing global energy needs. Wright acknowledged concerns about allowing Iranian oil to reach markets during the conflict but said the oil in question was already set to be sold.

“That oil was going to be monetized anyway,” he said, noting that the shipments had been waiting to be unloaded and would have entered the market through other channels.

Bessent’s statement also framed the authorization as part of a broader economic and security strategy. He said the United States would continue to deploy both economic and military measures in response to what he described as threats to global energy infrastructure.

“Any short-term disruption now will ultimately translate into longer-term economic gains for Americans – because there is no prosperity without security,” Bessent said.

Wright, in his remarks, also pointed to ongoing efforts to increase U.S. energy production and infrastructure capacity. He said domestic production has reached record levels and emphasized the role of expanded infrastructure in sustaining supply growth.

He noted that pipeline capacity and infrastructure development remain key factors in determining production levels, adding that further expansion would allow for increased output. He also referenced ongoing discussions with industry executives about investment and development priorities.

The Energy Secretary highlighted additional measures under consideration, including permitting reforms and expanded infrastructure projects, as part of a broader strategy to enhance energy security.

He also addressed the role of the Strategic Petroleum Reserve (SPR), stating that coordinated releases from reserves are being used to address short-term supply disruptions. He said these releases are part of an international effort and are expected to continue over the coming months.

Wright added that previous transactions involving the SPR involved exchanging current supply for future deliveries, resulting in a net increase in reserves over time.

The policy announcement comes as global energy markets remain sensitive to geopolitical developments, with officials emphasizing the need for coordinated action to maintain supply stability.

Bessent said the temporary authorization is intended to provide immediate relief while maintaining broader restrictions on Iran’s energy sector and financial access.