(qlmbusinessnews.com . Fri 20th Mar, 2026) London, UK —
US Proposal to Relax Iranian Oil Sanctions: A Strategy to Combat Global Energy Crisis
The United States is contemplating the relaxation of sanctions on certain Iranian oil exports in a bid to mitigate the repercussions of its conflict in Iran on the global energy sector.
In a recent conversation on Fox Business's “Mornings with Maria,” Treasury Secretary Scott Bessent suggested that easing these sanctions could increase the amount of oil accessible to international purchasers. The ongoing conflict has escalated energy prices worldwide, affecting shipping and production adversely.
Should this proposal come to fruition, it would represent a significant shift in the US's enduring approach to sanctions on Iran, although the outcomes of such a change remain highly speculative.
Analysts have posited that the effect on energy prices might be minimal, and there's a risk it could inadvertently enhance the financial resources available to the Iranian regime – the very government the US is currently battling.
“This is, to say the least, an astonishing development,” commented David Tannenbaum, director of Blackstone Compliance Services, a consultancy focusing on maritime sanctions. “In effect, by permitting Iran to trade oil, we might be indirectly funding their war efforts.”
Pre-war, China was the major purchaser of Iranian oil, exploiting discounts enforced by sanctions from the US and others, buying up around 4 million barrels daily.
Bessent articulated that a waiver lifting sales restrictions could reroute more oil to countries in dire need like India, Japan, and Malaysia, compelling China to pay the standard “market price”.
He discussed the consideration of lifting restrictions on Iranian oil that is currently in transit, estimated to be about 140 million barrels, a move he believes could temporarily depress global oil prices for about 10 to 14 days.
However, Bessent refrained from delving into the specifics of how such a waiver might be applied, including measures to prevent revenues from reaching the Iranian government. The Treasury Department has yet to elaborate on the proposal.
When President Donald Trump was questioned on this strategy, his response did not provide much clarity, merely stating, “we will do whatever is necessary to keep the price,” before abruptly halting his comment.
Given the relative modesty of the oil supply under discussion compared to global demand, experts have cautioned against expecting significant impacts on prices.
Moreover, although lifting sanctions could technically make more oil available to additional buyers, much of it has already found its way to the market.
“It might make a marginal difference… but I'm sceptical of it being a pivotal moment, and it certainly raises numerous questions,” said Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security.
The US has already taken steps to bolster supply, including releasing millions of barrels from oil reserves and easing certain sanctions on Russian oil, the latter of which has drawn criticism from European leaders concerned about potentially empowering Putin's regime amid the Ukraine war.
It remains uncertain whether Bessent's proposition will ignite similar controversy within the US, especially following the House of Representatives' recent approval of a bill aimed at tightening sanctions on Iran's oil sector.
Responses from Mike Lawler, a New York Republican who sponsored the bill, and Senator Jeanne Shaheen, a leading Democrat on the Foreign Affairs committee, were not forthcoming.
Ziemba expressed doubt that the US would intend for oil sale revenues to benefit the Iranian government, though admitted such an outcome might be challenging to avoid in reality.
The mere consideration of this step underscores the administration's desperation amid the current energy crisis, driven by the substantial supply shock.
The Strait of Hormuz, a vital passage for about a fifth of the global daily oil consumption of 100 million barrels, has seen disrupted shipments due to the war, significantly impacting the world's oil supply and raising concerns over long-term fossil fuel availability, especially in light of recent hostilities affecting key gas fields in Iran and Qatar.
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