U.S. Treasury Secretary Scott Bessent announced on the 19th (local time) that he is considering lifting sanctions on Iranian crude oil stranded at sea to lower oil prices that have surged due to war with Iran. In response, criticism has emerged that this amounts to "providing war funds to an enemy country."
Secretary Bessent appeared on Fox Business Network that day and said, "We could lift sanctions on Iranian crude oil at sea within the next few days," adding "approximately 140 million barrels."
He said, "This is the amount Iran was trying to send to China, and depending on the calculation method, it corresponds to about 10 days to 2 weeks of supply," and "we intend to use Iranian crude oil to check Iran while keeping oil prices low." He emphasized, "We have multiple tools at our disposal and there is much more we can do."
A source familiar with Treasury Department plans told The Guardian that sanctions relief on Iranian crude oil would likely be implemented in a manner similar to what was applied to Russian crude oil. It is a method that allows crude oil already stranded at sea to be sold only for a specific period.
The source said, "This measure could accelerate the redirection of crude oil that was destined for China toward a broader global market, and through this, it could help secure sufficient supply and weaken Iran's influence over the Strait of Hormuz."
However, the BBC pointed out that if this measure is implemented, it would be "a remarkable move that completely reverses long-standing U.S. policy," and "the impact on prices would be limited, and it could only increase funds flowing to the Iranian regime that the U.S. is attacking." David Tannenbaum, director of Blackstone Compliance Services, a consulting firm specializing in maritime sanctions, said, "Frankly, this doesn't make sense," adding "it amounts to allowing Iran to sell oil, and the proceeds could be used as war funds."
Alex Jordan, founder of energy policy consulting firm Capital Peak Strategies, also told the New York Times, "Iran is likely to channel oil sales revenues into regime maintenance and proxy activities," and "I don't think such a temporary measure will provide stability to the market."
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