US Lifts Sanctions on Iranian Oil 'In Transit' Amid Rising Prices, Strait of Hormuz Ultimatum

The Trump administration has strategically lifted sanctions on Iranian crude oil already loaded on tankers, estimated at millions of barrels, in an effort to stabilize global energy markets and combat rising prices. Treasury Secretary Scott Bessent indicated the move is designed to maintain global supply and prevent energy costs from surging during ongoing tensions with Iran, including reports of ballistic missile strikes on the Diego Garcia base and threats against global tourist sites. The waiver applies specifically to 'oil in transit,' not authorizing new production or long-term contracts. ## Latest Update U.S. Ambassador to the United Nations Mike Waltz stated that the Trump administration is working to blunt rising oil prices by allowing Iranian crude already at sea to be sold. While the oil can now be sold to countries like India and Bangladesh, financial sanctions on Iranian banks remain in place to deny Tehran the revenue. This strategy is part of a broader 'maximum pressure' campaign that includes a 48-hour ultimatum for Iran to reopen the Strait of Hormuz or face military action against its power plants. ## Timeline * **2026-03-19:** U.S. Treasury Secretary Scott Bessent indicates the administration is considering lifting sanctions on 'stranded' Iranian oil to lower energy prices. * **2026-03-21:** The Trump administration lifts sanctions on Iranian crude already loaded onto vessels, citing a need to keep prices down during Operation Epic Fury, amid reports of Iranian attacks and threats. * **2026-03-21:** The US gives the OK to buy Iranian oil already at sea as a strategic effort to maintain global supply and prevent energy costs from surging. * **2026-03-22:** U.S. Ambassador to the United Nations Mike Waltz states that the Trump administration is working to blunt rising oil prices by allowing Iranian crude already at sea to be sold, while issuing a 48-hour ultimatum for Iran to reopen the Strait of Hormuz. ## What to Watch * **Strait of Hormuz:** Monitor Iran's response to the ultimatum and any potential military actions in the Strait of Hormuz, which could further disrupt oil supplies. * **Market Volatility:** Track oil prices and energy market reactions to the evolving situation and the release of Iranian oil. * **Escalation Risks:** Pay attention to any further military actions or threats between the U.S. and Iran, which could lead to a broader conflict.