Trump Administration Reverses Course on Iran Oil Sanctions Amid Rising Prices

Washington D.C. – The Trump administration is preparing to lift sanctions on approximately 140 million barrels of Iranian crude oil currently held on tankers, a move signaling a significant reversal of policy as global oil prices surge and the economic impact of the ongoing conflict with Iran intensifies. The decision comes as crude oil prices reached $118 a barrel, exacerbating a global energy crisis according to recent reports.

U-Turn on Iran Sanctions

Treasury Secretary Scott Bessent announced Thursday that the administration is considering “unsanctioning” the Iranian oil currently afloat. “In the coming days, we may unsanction the Iranian oil that’s on the water,” Bessent stated in an interview with Fox Business Network. “So, depending on how you count it, that’s 10 days to two weeks of supply.” The Daily Beast reported this represents a substantial shift in strategy, potentially providing a significant financial benefit to Tehran.

This move is particularly striking given the Trump administration’s long-standing policy of imposing stringent sanctions on Iran to curtail its oil exports. These sanctions, initially reimposed after the U.S. Withdrawal from the 2015 nuclear deal, aimed to deny Iran its primary source of revenue. As recently as February 2026, weeks before the launch of “Operation Epic Fury,” the administration continued to add new sanctions targeting Iran’s shadow oil fleet.

Economic Pressures and Rising Oil Prices

The decision to potentially lift some sanctions is directly linked to the escalating oil prices and the broader economic consequences of the conflict. Crude oil prices have surpassed $100 a barrel, pushing gasoline prices towards $4 a gallon. PBS NewsHour reports that this situation underscores the risks associated with the Trump administration’s energy policies, particularly its focus on restricting clean energy alternatives.

President Trump had previously suspended the Jones Act in an attempt to alleviate shipping constraints, but this measure proved insufficient to stabilize the market. The Washington Post noted that the average cost of unleaded gas continues to rise.

Potential Impact on Iran’s Revenue

Although Iran has been selling sanctioned crude covertly, primarily to China, at discounted rates, lifting the sanctions could allow these barrels to be traded openly at full market value, increasing revenue for Tehran. The financial implications of this move are still being assessed, but it represents a significant concession to Iran amidst ongoing hostilities.

Second Emergency Unsactioning

This unsanctioning marks the second such emergency measure in the past seven days, highlighting the growing pressure on the administration to address the economic fallout from the conflict.