US issues temporary license to purchase Iranian crude

The US Department of the Treasury (DoT) has issued a one-month temporary license allowing countries to resume some purchases of Iranian crude oil amid the ongoing US-Israel conflict with Iran.

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The measure only allows transactions involving oil already stranded at sea, according to the US treasury department. The DoT will revoke the license on 19 April, it said.

The “narrowly tailored” short-term authorisation follows a similar 30-day waiver permitting countries to continue purchasing Russian crude amid reduced shipment through the Strait of Hormuz.

The waiver is expected to bring about 140 million bbls of Iranian oil to global markets and help reduce some concerns about oil supply, US treasury secretary Scott Bessent said on social media platform X.

“This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” Bessent said.

The US treasury’s licence states that Iranian crude could be brought into the US under the waiver to finalise its sale or delivery.

The waiver comes days after the Department of Energy said it would release 172 million bbls from the Strategic Petroleum Reserve (SPR) as part of the broader IEA-led effort to curb the surge in oil prices.

By Aparupa Mazumder

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