US Treasury Secretary suggests lifting sanctions on Iranian oil currently in transit

US Treasury Secretary Scott Bessent revealed on Thursday that the US might consider lifting sanctions on Iranian oil that is currently in transit, as global energy prices continue to escalate amid the ongoing conflict in the Middle East.

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This announcement was made during an interview with Fox Business, where Bessent discussed potential measures to mitigate soaring energy costs, which have been exacerbated by Iran's attack on the world's largest liquefied natural gas facility in Qatar.

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Bessent also mentioned that the US government is exploring the possibility of releasing additional oil from its strategic reserves to help stabilize the market.

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The US administration, under President Donald Trump, has been working to contain the surge in energy prices since the US-Israeli strikes on Iran on February 28, which prompted Tehran to retaliate and disrupt commercial shipping through the Strait of Hormuz.

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The Strait of Hormuz is a critical waterway, with around a fifth of global crude oil and liquefied natural gas typically passing through it during times of peace.

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The recent escalation in tensions has already led to a significant increase in international benchmark Brent, which surged 10 percent before easing to a 5.0 percent increase at $112.76 per barrel.

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In a similar move, the United States recently allowed the temporary sale of sanctioned Russian oil that is currently at sea.

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On Wednesday, President Trump took further action to ease energy prices by temporarily waiving a century-old maritime shipping law.