US Mulls SPR Release, Easing Iran Sanctions Amidst Oil Price Surge

Amidst a volatile geopolitical landscape in the Middle East, marked by escalating conflict between the US-backed Israel and Iran, US Treasury Secretary Scott Bessent has signaled the United States' readiness to employ further measures to stabilize global oil prices. In a series of interviews, including one with Fox Business Network, Bessent indicated that the US could potentially release more oil from its Strategic Petroleum Reserve (SPR) and explore the "unsanctioning" of Iranian oil that is currently en route on tankers. These statements come as global crude oil prices have surged, with Brent crude futures inching close to the 52-week high of $119.5 per barrel, and West Texas Intermediate (WTI) crude also experiencing significant increases. Bessent clarified that the US Treasury is not intervening in futures markets but is focused on increasing the physical supply of oil to influence prices. He estimated that there are approximately 140 million barrels of Iranian crude oil on the water, and that "unsanctioning" this oil could help stabilize prices for at least 10 to 14 days. This strategy echoes a similar approach taken with Russian oil, where a waiver was issued to allow sanctioned Russian crude already at sea to be sold, injecting approximately 130 million barrels into the market. The broader context for these potential actions includes a large-scale coordinated release of oil reserves by 32 member nations of the International Energy Agency (IEA), totaling 400 million barrels. As part of this initiative, the US authorized the release of 172 million barrels from its SPR, with deliveries expected to take approximately 120 days. This release brought US reserves to their lowest levels since 1982. The US administration is also considering other measures, such as temporarily waiving the Jones Act, a century-old maritime law that requires goods shipped between US ports to be carried by US-built, US-owned, and US-flagged vessels. This waiver aims to ease supply pressures and curb rising fuel prices by allowing foreign-flagged vessels to transport cargo, including oil and natural gas, to US ports for a period of 60 days. Geopolitical tensions have been a primary driver of the current oil price surge. The US and Israel initiated strikes against Iran on February 28th, leading to retaliatory actions from Iran, including threats to block oil shipments from the Gulf and attacks on shipping and infrastructure. The closure or disruption of the Strait of Hormuz, a critical chokepoint for global oil transit, poses a significant threat to supply. Reports indicate that Iran's Islamic Revolutionary Guard Corps issued evacuation warnings for several oil and gas facilities in Saudi Arabia, the UAE, and Qatar. The implications of these developments extend to India. India, as the world's third-largest oil consumer, relies heavily on imports. Recent US policies have aimed to influence India's energy sourcing, particularly regarding Russian oil. A recent trade agreement between the US and India, announced on February 2, 2026, involved India's commitment to reduce or halt purchases of Russian oil and pivot towards alternatives like US and Venezuelan crude. The US has also imposed tariffs on India's Russian oil purchases, aiming to pressure Russia's energy sector. Forex Factory, the source of the article, is a well-established online platform that provides real-time financial news, market analysis, and a community forum for traders. While it is a reputable source for financial news and discussion, the specific article in question is a report on statements made by US Treasury Secretary Scott Bessent, which are corroborated by numerous other news outlets. The news category is primarily Politics and Economics, with global implications. The news is specific to multiple countries, affecting global energy markets, and is therefore considered global in scope. The publication date of the original article is March 19, 2026, based on the timestamps of related reports..

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