Introduction#
The United States is contemplating allowing sanctioned Iranian oil currently stored on ships to enter the market. This decision aims to help manage the rising prices of crude oil, according to Treasury Secretary Scott Bessent.
Iranian Oil on Vessels#
Bessent revealed that there are about 130 million barrels of Iranian oil floating on vessels, which could be utilized to stabilize prices. Despite ongoing tensions in the region, he noted that the US has permitted some Iranian oil to continue flowing out of the Gulf.
Rising Oil Prices#
The remarks come as benchmark Brent oil prices surged above $119 a barrel. This increase follows recent attacks by Iran on energy facilities in the Middle East, which were in retaliation to Israel's strike on Iran's South Pars gas field. Bessent described the previous evening as significant for strikes on Iran, but he clarified that the US is not targeting Iranian energy infrastructure.
US Oil Reserve Strategy#
In addition to considering Iranian oil, Bessent mentioned that the US could also release oil from its reserves as part of its strategy to intervene in the market. However, he emphasized that the administration is not engaging in the oil futures markets but is focused on increasing supply by utilizing the oil currently on vessels.