Tensions in the Gulf Ease as U.S. Considers Lifting Sanctions on Iranian Oil
DUBAI, United Arab Emirates – Oil prices dipped Friday as the United States signaled it may soon remove sanctions on Iranian crude oil currently held in tankers, a move aimed at stabilizing global markets rattled by escalating tensions in the Middle East. The potential easing of restrictions comes after Iran attacked energy facilities in the region following a strike on its South Pars gas field, and its closure of the Strait of Hormuz.
Brent crude futures for May delivery fell 0.4% to $108.23 per barrel during early European trading, while West Texas Intermediate futures for April delivery dropped 0.6% to $95.56, according to CNBC.
U.S. Treasury Secretary Scott Bessent indicated Thursday that Washington is prepared to act to curb soaring prices. “In the coming days, we may unsanction the Iranian oil that’s on the water, about 140 million barrels,” Bessent told Fox Business Network. He added that releasing the sanctioned crude would help cap prices over the next 10 to 14 days.
The move reflects a growing concern over the economic impact of the conflict. According to the Guardian, Bessent’s announcement came as Washington seeks to curb prices soaring over Iran’s closure of the Strait of Hormuz.
The U.S. believes tanker traffic through the Strait of Hormuz will increase before Navy escorts are deployed, Bessent said, as reported by CNBC.
Citi analysts predict Brent and WTI could climb to $120 per barrel in the near term, and potentially $150 in a “bull-case” scenario if disruptions worsen. However, they anticipate de-escalation within four to six weeks, which would allow Brent to fall back to $70–$80 by year-end.
Saudi Arabian oil officials reportedly expect crude prices could surpass $180 a barrel if disruptions persist beyond late April, the Wall Street Journal reported.
Israeli Prime Minister Benjamin Netanyahu stated that Israel is assisting U.S. efforts to reopen the Strait of Hormuz, and claimed Iran no longer possesses the capability to enrich uranium or produce ballistic missiles, suggesting a potential for a quicker resolution to the conflict, according to wire reports.
