Shortly after the United States temporarily eased sanctions on Iranian oil at sea, Indian refiners are planning to resume purchasing crude from Iran, news agency Reuters reported on Saturday citing traders.
Along with this, other Asian traders are also mulling a similar sttep in the aftermath of sanctions being waived from Iranian oil which has already been loaded into ships.
Refiners are are awaiting government directives and clarity from America on the nitty-gritties of the authorisation such as payment terms to purchase crude from Tehran, post which they will resume the trade, Reuters cited refiners as saying.
The US has temporarily eased sanctions on Iranian oil at sea to curb the rally in crude oil prices with IRGC's Strait of Hormuz Blockade in place.
Israel and America's war with Iran entered into its 22nd day on Saturday, and with it strain on the narrow Hormuz channel, reponsible for transit of 20% of global oil, continued.
The conditional authorisation by US Treasury permits the delivery and sale of Iranian crude oil and other petroleum products loaded onto ships before March 20. In a statement on Friday, the Treasury outlined that the allowance is valid till April 19.
On Thursday, US Treasury Secretary Scott Bessent had announced that a lift in sanctions, which follows suit from easing of curbs on Russian oil at sea, was under consideration.
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Iran's strategic blockade of the Strait of Hormuz has caused the biggest ever oil disruption in history, causing a crunch in supply and a sharp rise in crude oil prices across the globe.
In a statement on Friday, Bessent described the move by the Office of Foreign Assets Control, as a narrowly tailored, short-term authorisation that follows President Donald Trump's intention to "maximise the flow of energy to the world" and ensure market stability.
"At present, sanctioned Iranian oil is being hoarded by China on the cheap," Bessent remarked.
"By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran," he added.
On the other hand, Tehran, claimed that it had no surplus crude oil to offer to international markets.
"Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets, and the US treasury secretary's statement is solely aimed at giving hope to buyers," Iranian oil ministry spokesman Saman Ghoddoosi wrote on X.
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