NEW YORK: The U.S. Treasury Department on Friday issued a general license temporarily lifting sanctions on Iranian oil at sea for 30 days to address the supply shortage amid shipping interruptions in the Strait of Hormuz.
The general license, issued by the department’s Office of Foreign Assets Control, authorized the delivery and sales of crude oil and petroleum products of Iranian origin loaded on vessels as of Friday.
Transactions for safe docking and anchoring of relevant vessels, preservation of health or safety of crew members, emergency repairs or environmental protection as well as various services were also allowed.
Notably, transactions authorized by this general license include the importation into the United States of crude oil and petroleum products of Iranian origin.
“This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” said U.S. Treasury Secretary Scott Bessent in an X post on Friday.
Iran will have difficulty accessing any revenue generated and the United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system, said Bessent.
Washington has already eased sanctions on Russian and Venezuelan oil in addition to the coordinated release of emergency oil reserves under the umbrella of the International Energy Agency.
The ongoing war involving the United States, Israel and Iran has lasted three weeks, severely disrupting shipping through the Strait of Hormuz, as oil shipments through the strait have fallen to less than 10 percent of pre-conflict levels. (Xinhua)
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