US May Lift Sanctions on Iranian Oil at Sea

The Trump administration is weighing an unusual step amid the Iran war: lifting sanctions on Iranian oil already on ships at sea. Treasury Secretary Scott Bessent said on Fox News Thursday that the US is preparing to lift sanctions on roughly 140 million barrels of Iranian oil currently at sea and ostensibly headed to China. Bessent framed the move as a way to see some of that oil go to "good actors" such as Malaysia, Singapore, Indonesia, Japan, and India, in addition to China, reports the AP. Key details remain murky, including how the sanctions relief would be structured, how Iran would be paid, and which frozen assets might be involved, notes the Wall Street Journal.

• Bessent: The Treasury chief called it a strategic move: "In essence, we will be using the Iranian barrels against the Iranians to keep the price down for the next 10 or 14 days, as we continue this campaign."
• Critic I: Skeptics were scratching their heads, including Brett Erickson of Obsidian Risk Advisors, who notes that the US also recently lifted sanctions on Russian oil. "The United States has spent years building sanctions architecture specifically designed to constrict Russia and Iran," he tells the Washington Post. "Within three weeks of this conflict starting, we're tearing it to shreds. That is not a short-term adjustment, it's a complete strategic collapse."
• Critic II: "Let me get this straight," wrote financier and former Trump official Anthony Scaramucci. "We attack Iranian oil facilities to hurt the regime, then we unsanction Iranian oil in hopes they sell it to our allies, so that we can continue to bomb the regime. It's a bold strategy ... let's see how it pays off for 'em."