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3. U.S. Temporarily Lifts Sanctions on Iranian Oil, Two Tankers Load at Kharg Island, Sources Say

The U.S. has lifted sanctions on some Iranian oil for 30 days to ease surging oil prices driven by the U.S.-Israeli war on Iran.

The U.S. treasury secretary, Scott Bessent, said the waiver would bring about 140 million barrels of oil to global markets and help relieve pressure on energy supply.

In a statement on X, Bessent said “In essence, we will be using the Iranian barrels against Tehran to keep the price down as we continue Operation Epic Fury.”

“To put it mildly, this is bananas,” the Blackstone Compliance Services director, David Tannenbaum, told the BBC.

“Essentially, we’re allowing Iran to sell oil, which could then be used to fund the war effort.”

Bessent has, however, reiterated that the move is “temporary, short-term… [and] strictly limited to oil that is already in transit and does not allow new purchases or production,” he wrote.

Indications of Use

Two Very Land Crude Carrier (VLCC) oil tankers are loading today at Kharg Island, according to TankerTrackers.com, an open-intelligence platform which monitors international shipping.

According to the group, the estimated cargo could be as much as 4 million barrels of oil, which would be worth over $400 million.

U.S. Domestic Calculus

According to many political analysts, the decision to temporarily lift sanctions also reflects the Republican Party’s domestic calculations.

Some say the White House is concerned that soaring oil prices, which reached a peak of $118 a barrel (Brent Crude) Thursday morning, will hurt US businesses and consumers ahead of highly consequential midterm elections this November.

Republicans currently control both houses of congress, but politicians and constituents are increasingly divided on the utility of the war in Iran.