US Considers Easing Sanctions on Iranian Oil to Stabilise Global Markets

The United States is weighing a significant policy shift that could see sanctions lifted on Iranian crude currently stranded at sea, in a bid to stabilise global oil markets amid ongoing supply disruptions.

Speaking on Thursday, Scott Bessent indicated that Washington may soon allow the release of approximately 140 million barrels of Iranian oil held on tankers. The proposed move is aimed at increasing immediate global supply and easing upward pressure on crude prices.

Short-Term Market Relief

Bessent noted that the additional volume could provide temporary relief to markets facing acute supply constraints, particularly in the wake of geopolitical tensions affecting energy flows.

“The available supply could help contain prices for the next 10 to 14 days,” he said, highlighting the urgency of addressing the current imbalance between supply and demand.

Analysts estimate that disruptions linked to regional instability have already impacted more than 15 million barrels per day of global oil flows, intensifying concerns over price volatility.

Policy Shift Amid Strategic Pressures

The move would represent a notable departure from the long-standing sanctions regime imposed by the United States on Iran, primarily aimed at curbing its nuclear programme.

However, the approach is not without precedent. US authorities have previously permitted the limited release of sanctioned oil—most notably involving Russian crude—to mitigate market disruptions during periods of heightened volatility.

Bessent suggested that releasing Iranian oil into the market could serve a dual purpose: stabilising prices while indirectly applying economic pressure.

Potential Redirection of Oil Flows

If sanctions are eased, Iranian crude—currently exported predominantly to China—could be redirected to a broader range of buyers, particularly across Asia.

Countries such as India, Japan, Malaysia, Singapore, and Indonesia could potentially benefit from increased availability, especially as refiners in the region seek alternative sources of supply.

Asia remains particularly vulnerable to disruptions, given its heavy dependence on crude imports from the Persian Gulf.

Broader Market Implications

The proposal comes at a time when global energy markets are under sustained pressure due to conflict-related disruptions and risks to critical infrastructure. With uncertainties persisting, industry observers warn that oil prices could remain volatile in the near term.

If implemented, the temporary easing of sanctions on Iranian oil could offer short-term stabilisation, though its long-term geopolitical and economic implications remain uncertain.