Source: Fortune
Summary
The US has allowed the sale of Iranian oil and petrochemical products already loaded onto tankers, in an effort to counter rising oil prices due to the Middle East war. The Department of Treasury issued a general license for energy on vessels as of Friday, authorizing purchases through April 19. This move follows similar actions for Russian oil on the water, aiming to ease the fuel supply crunch caused by the war.
Our Reading
The numbers tell one story.
The US Treasury’s move to allow Iranian oil sales may provide temporary relief to the oil market, but it’s a complex web of sanctions and restrictions that will still challenge potential buyers. The waiver is set to expire on April 19, and Iran disputes the estimated 140 million barrels of oil on water. Meanwhile, Congressional Democrats slam the measure as an economic gift to Iran during a war. Amidst the chaos, oil prices remain high, with Brent crude surging over 50% this month.
As the US Treasury Secretary says, Iran “will have difficulty accessing any revenue generated” – a statement that sounds like a carefully crafted assurance.
Author: Evan Null
