Iran Denies Floating Crude After US Sanctions Ease

In a statement issued by Iran's consulate in Mumbai, it said, "At present, Iran essentially has no floating crude or surplus available for international markets. The U.S. Treasury Secretary's remarks appear aimed at reassuring buyers and managing market sentiment."

The denial from Iran could further unsettle an already volatile market, where crude oil prices have surged as the West Asia conflict approaches its fourth week.

Earlier, on Friday (local time), the United States announced a temporary easing of sanctions on Iranian-origin crude oil and petroleum products until April 19, 2026. This includes permitting the sale of Iranian crude and refined products into the United States.

The details were provided in a statement from the US Department of the Treasury's Office of Foreign Assets Control (OFAC), which authorised the delivery and sale of Iranian-origin crude oil and petroleum products loaded on vessels as of March 20.

The statement noted that exceptions would remain in place until April 19, 2026.

It added that, with certain exceptions, "all transactions ordinarily incident and necessary to the sale, delivery, or offloading of Iranian-origin crude oil or petroleum products loaded on any vessel on or before 12:01 a.m. EDT, March 20, 2026, are authorized through April 19, 2026."

The authorization also includes the import of Iranian-origin crude oil and petroleum products into the United States.

Earlier, US Treasury Secretary Scott Bessent, in a post on X, described the move as a "narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea."

He said the decision aims to stabilise global energy markets and ease supply pressures.

Bessent added that sanctioned Iranian oil is currently being stockpiled cheaply by China and that releasing this supply could bring approximately 140 million barrels of oil into global markets.

He stated that the move would help relieve temporary supply pressures and keep prices down.

However, he emphasised that the authorization is limited in scope and applies only to oil already in transit, not allowing new production or purchases.

He also noted that Iran would face difficulty accessing the revenue generated, as the US would continue its pressure campaign and restrict Iran’s access to the international financial system.

Bessent further highlighted broader efforts by the US administration to boost global energy supply, claiming that around 440 million additional barrels of oil have been brought to the market.

He added that increased US oil and gas production under President Donald Trump’s policies has strengthened energy security and lowered fuel costs.

Meanwhile, as the conflict continues, the Strait of Hormuz remains largely closed to maritime traffic, further straining global energy supplies and impacting diplomatic relations.