US to unsanction Iranian oil floating on water, says Bessent

Investing.com -- The United States may permit sanctioned Iranian oil currently stored on vessels to enter the market as part of efforts to manage rising crude prices, Treasury Secretary Scott Bessent said Thursday on Fox Business’s Mornings with Maria.

Bessent said there were approximately 130 million barrels of Iranian oil on water that could be utilized to keep prices down. The Treasury Secretary indicated the US has allowed Iranian oil to continue flowing out of the Gulf despite ongoing tensions.

The comments come as benchmark Brent oil prices jumped above $119 a barrel Thursday after Iran attacked energy facilities across the Middle East following Israel’s strike on its South Pars gas field.

Bessent described Wednesday evening as the biggest night for strikes on Iran but emphasized that the US was not attacking Iranian energy infrastructure. He characterized the Strait of Hormuz as a temporary chokepoint.

The Treasury Secretary said the US could also conduct a unilateral release of oil reserves as part of its intervention strategy. He clarified that the administration was not intervening in oil futures markets but was instead creating supply with oil on water.

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