On Friday, the Trump administration announced a temporary suspension of sanctions on Iranian oil that is currently “stranded at sea,” aiming to address the sharp rise in oil prices.

Treasury Secretary Scott Bessent shared on X that the Department of the Treasury is granting a “narrowly tailored, short-term authorization” to allow the sale of this Iranian oil.

Bessent highlighted that this move would introduce 140 million barrels of oil into global markets, which is expected to “alleviate the temporary supply pressures caused by Iran.”

Bessent also noted that the sanctioned Iranian oil is currently being “acquired at low prices by China.”

“Essentially, we’re leveraging these Iranian barrels against Tehran to stabilize prices as we progress with Operation Epic Fury,” the treasury secretary explained.

This temporary lift on sanctions is set to remain effective until April 19.

The authorization is “strictly limited” to oil that is already in transit and does not allow new purchases of Iranian oil.  

The price of Brent crude rose to $103 Friday as Iran’s blockade of the Strait of Hormuz continues to disrupt global oil markets. 

The Strait of Hormuz – responsible for a fifth of the world’s oil exports – has been effectively closed by Tehran since President Trump launched the joint US-Israeli attack on Iran on Feb. 28.

The Iranian regime has repeatedly attacked oil tankers attempting to use the critical waterway. 

Last week, the Trump administration similarly paused sanctions on Russian oil stranded at sea and weighed another release of oil from the US Strategic Petroleum Reserve as fuel prices skyrocketed. 

On Thursday, Vice President JD Vance warned that consumers face a “rough road ahead” due to the Iran war.

“We’ve got a rough road ahead of us for the next few weeks, but it’s temporary,” Vance said at an event outside Detroit. 

“Look, gas prices are up, and we know that they’re up and we know that people are hurting because of it, and we’re doing everything we can to ensure they stay lower,” he continued, adding that Trump was “working on a number of things — in fact, a couple of things that I think will be announced in just the next 24 to 48 hours” to bring prices at the pump down. 

Energy Secretary Chris Wright has said there is “a very good chance” that gasoline prices – which hit $3.91 on Friday, per AAA – will be back below $3 by the summer.