• Source:JND

Fuel Crisis: The United States announced on Saturday the temporary lifting of sanctions on the sale of Iranian oil stranded at sea, in an attempt to ease pressure amid soaring global crude prices due to the ongoing US-Israel war with Iran in the Middle East. US Treasury Secretary Scott Bessent said the temporary measure will make available 140 million barrels of Iranian oil to global markets.

"This temporary, short-term authorisation is strictly limited to oil that is already in transit and does not allow new purchases or production. Today, the Department of the Treasury is issuing a narrowly tailored, short-term authorisation permitting the sale of Iranian oil currently stranded at sea," Bessent said in a long post on X.

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The US official claimed that at present, sanctioned Iranian oil is being hoarded by China on the cheap.

The price of Brent crude has witnessed sharp swings from roughly USD 70 per barrel before the war began to as high as USD 119.50 this week.

So far, the Trump Administration has been working to bring around 440 million additional barrels of oil to the global market, undercutting Iran's ability to leverage its disruptions in the Strait of Hormuz, the US official said.

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How Will A Waiver For Iran Help India?

Approximately 140 million barrels of Iranian oil to global markets will provide a temporary relief to fuel importers, including India. According to Bessent, by temporarily unlocking this existing supply for the world, the US will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran. "In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury," Bessent said.

If the crude oil prices come down, it will affect the Indian fuel market too. The prices of petrol and diesel will come down, which will soothe inflation. 70 per cent of India’s crude imports have been routed outside the Strait of Hormuz after the crisis triggered in the Middle East, which means India still depends on the narrow sea route, which is controlled by Iran, for 30% of oil.

(With PTI inputs)


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