The US has taken a major step to provide relief to the global energy market amid ongoing tensions with Iran. The Trump administration has granted a 30-day temporary moratorium on purchases of oil extracted from Iran and currently at sea, hoping to increase supplies in the international market. The Trump administration has announced such relief for the third time in two weeks, as the war with Iran has affected oil supplies around the world. After this concession on Iran's oil, the supply of 14 million barrels of additional oil will increase in the market.
According to US Treasury Secretary Scott Bessant, the government has announced a 30-day 'sanctions waiver' on purchases of Iranian oil and petroleum products. This discount will be applicable from March 20 to April 19.
This is the third time in the past two weeks that the US has eased restrictions to ease pressure on energy supplies. Earlier some restrictions on Russian oil were also eased. Under the decision, the sale of Iranian oil loaded on those ships, which are already at sea, is allowed.
According to the US, about 140 million barrels (14 million barrels) of crude oil can come to the global market with this decision. According to Scott Bessant, the move is to ease temporary supply pressure in the global market. This will increase the supply of crude and may bring down the prices slightly. Experts believe that this relief is limited and a complete relief in crude is not possible until the Iran war ends.
Most countries do not buy oil directly from Iran due to sanctions on Iran. However, Iran ships the oil into large tankers at sea, from where the oil reaches international waters. Secondly, any buyer or country that wants to buy oil buys oil through these tankers, for which a 'shadow fleet' is used. The US has now approved the purchase of oil from these ships (which are loaded with Iranian oil and are in international waters). In short, now countries like India can get this oil through 'ship to ship transfer' without any worries. (AI Generated)
Crude oil prices are currently around $110 per barrel. The price reached above $112 in the Friday session. Crude oil is the biggest concern in markets around the world. Rising energy prices are expected to trigger a major spike in inflation, which will impact economic growth and central banks' policy decisions. That's why markets around the world are under pressure, and the Trump administration is easing sanctions from Russia to Iran to ease the pressure. (AI Generated)
Also Read: From which exchequer does the 'Government of India' pay oil money bought from abroad? Is there a 'guarantee' of safe delivery of oil in the country?
. Source
