US Treasury Grants Temporary License for Iranian Oil Sales

The US Treasury Department has introduced a temporary license permitting the sale of Iranian crude oil and petroleum products loaded onto vessels before March 20. This measure, valid until April 19, aims to ease restrictions while maintaining broader sanctions against Iran. Treasury Secretary Scott Bessent emphasized that this license is a short-term solution and does not indicate a general relaxation of sanctions. The decision comes amid rising tensions between the US and Iran, particularly in the context of the Israel-Iran conflict. Following the announcement, global oil prices surged, reflecting market reactions to the evolving geopolitical landscape.

By Narendra Chaudhary Mar 21, 2026, 05:08 IST

New License for Iranian Oil Sales

On Friday, the US Treasury Department announced a new general license concerning Iran, which permits the sale of Iranian crude oil and petroleum products that were loaded onto vessels prior to March 20. This authorization will remain in effect until 12:01 AM EDT on April 19. According to the Treasury's official website, this measure allows for the temporary delivery and sale of oil originating from Iran under specific conditions, thereby easing restrictions for vessels already transporting these products.

Details of the New Treasury License

The newly issued license enables vessel owners carrying Iranian crude oil or petroleum products that are already loaded to sell and deliver their cargo within the 30-day timeframe. This temporary measure relaxes US restrictions on such shipments, providing limited trading opportunities while still upholding broader sanctions against Iran. It is important to note that this license only applies to oil already on board ships and does not permit new shipments from Iran.

Officials clarified that this temporary license does not signify a wider easing of sanctions and is strictly applicable to the specified shipments. Traders and shipping companies must adhere to the license's terms to ensure compliance during this period.

Statements from Scott Bessent

US Treasury Secretary Scott Bessent characterized the license as a “narrowly tailored, short-term authorization allowing the sale of Iranian oil currently stranded at sea,” in a statement posted on X. He further indicated that Iran “will have difficulty accessing any revenue generated,” suggesting that the US aims to maintain pressure on Tehran despite this temporary relief for certain shipments.

The Treasury's decision comes amid escalating tensions between the US and Iran, particularly in light of the ongoing Israel-Iran conflict. This move seeks to alleviate economic pressures while retaining diplomatic leverage over Iran. Following the announcement, global oil markets reacted, with benchmark crude prices rising above $112 a barrel on Friday, marking the highest level since mid-2022. Prices saw a slight decline in post-settlement trading after US President Donald Trump mentioned he was contemplating “winding down” military efforts against Iran.