'Using their barrels against them': Trump floods market with Iranian oil to crash global prices, issues 30-day sanctions waiver
&imwidth=600&imheight=450&format=webp&quality=medium "'Using their barrels against them': Trump floods market with Iranian oil to crash global prices, issues 30-day sanctions waiver")
US Using Iranian Oil to Bankrupt Tehran, announces 30-day sanction waiver Photograph: (AI-Generated image)
US announced a 30-day "waiver" allowing the sale of Iranian crude already loaded on vessels (as of March 20). The goal? Release 140 million barrels immediately to stabilise a market rattled by Strait of Hormuz closure. The Catch: Iran is blocked from accessing the revenue.
In a high-stakes gambit to break the global energy crisis, the Donald Trump administration has issued a shock 30-day sanctions waiver, seeking to flood the market with 140 million barrels of stranded Iranian oil. 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. 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.
The 140 Million Barrel Surge: How the US is Using Iranian Oil to Bankrupt Tehran
Taking to X, Trump's treasury secretary confirmed that the US was issuing a "narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea."
Calling Iran the "head of the snake for global terrorism," he claimed Operation Epic Fury was closer to winning the critical fight than previously anticipated. Scott Bessent revealed that America plans to use "Iranian barrels against Tehran to keep the price down".
By his estimates, this move will flood the global crude market with approximately 140 million barrels of oil. This, he said, would relieve the "temporary pressures on supply caused by Iran". Since the start of the US-Israel-Iran war, Iran has effectively closed the shipping channel through which over one-fifth of global oil and one-quarter of liquefied natural gas (LNG) pass daily. This has led to the price of a barrel of North Sea Brent crude to skyrocket to $112.19 on Friday, up 3.26 per cent.
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The Trump aide 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.
Targeting the 'China Discount': Why Trump is Ending Beijing’s Cheap Energy Monopoly
According to Beesent's X post, as the global markets battle soaring oil prices, China has been hoarding Iranian oil "on the cheap". By waiving off the sanctions on Iranian oil, the US is effectively flooding the market with millions of barrels of oil, temporarily bringing down the oil prices.
He noted that the waiver is strictly applicable "to oil that is already in transit and does not allow new purchases or production".
Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.
