US considers lifting sanctions on some Iranian oil

Treasury Secretary Scott Bessent broached waiving sanctions on oil already at sea, which would be a stunning reversal of longstanding American policy.

In response to the Iran war and surging global oil prices, the U.S. Treasury has eased sanctions on Venezuela’s state-run oil company PDVSA, allowing limited oil trade with U.S. businesses and international markets.

President Trump considers 'winding down' military operations in the Middle East, even as more U.S. troops and warships are deployed amid escalating tensions.

The U.S. government is considering lifting sanctions on Iranian oil currently at sea as a measure to reduce rising global oil prices, Treasury Secretary Scott Bessent announced on Thursday. This follows a significant 10% surge in Brent crude prices within 24 hours, sparking economic concerns. The Biden administration has previously tried to stabilize prices by offering tanker escorts through the Strait of Hormuz, waiving the Jones Act, and temporarily easing sanctions on Russian oil. The potential move to unfreeze Iranian oil—once a key negotiation point for Iran—would mark a major geopolitical shift, as the U.S. appears willing to make wartime concessions that were previously off the table in diplomacy. Experts suggest that a waiver could redirect some oil bound for China into wider global circulation, underscoring the administration’s commitment to curbing inflationary pressures despite the broader implications.

The White House stated on Thursday that the Trump administration has no plans to impose restrictions on U.S. oil and gas exports. This announcement comes amid escalating concerns over rising energy prices and speculation that the government might intervene in market dynamics by limiting exports—a move that would significantly diverge from the country's trend of increased global energy participation. Despite market signals suggesting that export limits were being considered, officials clarified that such restrictions are off the table. Analysts have generally opposed the idea of limiting exports, noting potential negative impacts on market stability. In lieu of restrictions, the administration is evaluating other actions to address high energy prices, potentially including measures like lifting sanctions on Iranian oil. The article was later updated with further reporting and a visual graphic on U.S. oil exports.