US's oil gambit: How Trump is using Iranian crude to bankrupt Tehran amid Strait of Hormuz blockade | In Pics
Iran war day 21: US President Donald Trump declares a 30-day waiver on Iranian oil. With 140 million barrels of oil unlocked, does this mean the end of the global energy crisis? How will this bankrupt Tehran? All you need to know.
'Using Tehran’s Oil Against Tehran': The US Strategic Shift
On Day 20 of the conflict, the Trump administration issued a shock 30-day sanctions waiver. The goal? Release 140 million barrels of "stranded" Iranian oil to crash global prices while keeping the regime's bank accounts frozen.
Treasury Secretary Scott Bessent confirmed the move on Friday (Mar 20), stating that the US will effectively "use Iranian barrels against Tehran" to drive down prices as the Iran War enters its 22nd day.
Strait of Hormuz Standoff: Breaking the Global Energy Chokehold
Since Feb 28, Iran has effectively throttled the Strait of Hormuz, a vital channel carrying 20 per cent of the world's oil. This blockade pushed Brent crude to a staggering $112.19, prompting Washington's latest manoeuvre.
By unlocking oil currently, allegedly being "hoarded by China on the cheap," Washington aims to provide a massive 440-million-barrel cushion to the global market, undercutting Iran’s leverage over the Strait of Hormuz while ensuring the "head of the snake" remains financially strangled, said Bessent.
Ending the 'China Monopoly': Washington Moves to Stop Beijing’s Cheap Hoarding
Treasury Secretary Scott Bessent accused China of hoarding Iranian oil "on the cheap" during the war. The new waiver effectively floods the market with millions of barrels of oil, erasing Beijing’s "discount" advantage.
He noted that the waiver is strictly applicable "to oil that is already in transit and does not allow new purchases or production".
Emptying the Coffers: Why Iran Won't See a Cent of the Oil Surge
Bessent said “head of the snake for global terrorism,” and using this groundbreaking strategy, the US is effectively decapitating it. While the US is permitting the sale of oil, it will continue to block Iran's access to the revenue. This means Tehran loses its physical oil reserves without gaining the international currency needed to fund its war machine.
How US will bankrupt Iran
Scott Bessent noted Iran will not be able to access any revenue generated from this oil, effectively emptying Tehran's oil coffers, while denying it any money in return. "The United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system," he added.
30 Days of 'Market Oxygen': Can 140 Million Barrels Stop the Price Hike?
Amid Iran's blockade of the Strait of Hormuz, prices for Brent crude have surged. The International Energy Agency (IEA) calls this the "largest supply disruption in the history of the global oil market".
By adding a 440-million-barrel cushion (including domestic reserves), the US hopes to stabilise prices that peaked between $120 and $126 last month.
Iran flags US's false hope tactic
Iran said Friday that it had no surplus crude oil to offer to international markets after the US Treasury secretary said Washington could lift sanctions on Iranian oil at sea.
"Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets, and the US Treasury secretary's statement is solely aimed at giving hope to buyers," Iranian oil ministry spokesman Saman Ghoddoosi wrote on X.
Oil prices today (March 20, 2026)
Stocks tumbled while oil prices climbed on Friday, capping a turbulent week in which attacks on Gulf energy infrastructure rattled global markets and fueled fears of a worldwide economic slowdown.
Crude extended its gains, with international benchmark Brent rising 3.3% to $112.19 a barrel. The main US benchmark, West Texas Intermediate, added 2.3% to $98.32.
Key figures at around 2015 GMT (March 20, 2026)
Brent North Sea Crude: UP 3.3 per cent at $112.19 per barrel
West Texas Intermediate: UP 2.3 per cent at $98.32 per barrel
New York - Dow: DOWN 1.0 per cent at 45,577.47 (close)
New York - S&P 500: DOWN 1.5 per cent at 6,506.48 (close)
New York - Nasdaq Composite: DOWN 2.0 per cent at 21,647.61 (close)
London - FTSE 100: DOWN 1.4 per cent at 9,918.33 (close)
Paris - CAC 40: DOWN 1.8 per cent at 7,665.62 (close)
Frankfurt - DAX: DOWN 2.0 per cent at 22,380.19 (close)
Hong Kong - Hang Seng Index: DOWN 0.9 per cent at 25,277.32 (close)
Shanghai - Composite: DOWN 1.2 per cent at 3,957.05 (close)
Tokyo - Nikkei 225: Closed for a holiday
Euro/dollar: DOWN at $1.1550 from $1.1589 on Thursday
Pound/dollar: DOWN at $1.3323 from $1.3257
Dollar/yen: DOWN at 159.30 yen from 159.86 yen
Euro/pound: UP at 86.68 pence from 86.38 pence
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