Unlocking Potential: U.S. Considers Releasing Sanctioned Iranian Crude to Boost Global Oil Reserves
Oil prices experienced a notable surge of up to 3% on Thursday following a series of assaults by Iran on energy facilities throughout the Middle East, a reprisal following a strike on its South Pars gas field. However, U.S. oil prices declined on Friday as Treasury Secretary Scott Bessent announced that the U.S. might soon lift sanctions on Iranian crude currently stored on tankers. This potential move aims to alleviate price pressures exacerbated by Iran’s closure of the critical Strait of Hormuz.
As of 1:49 a.m. ET, Brent crude, the international oil benchmark, saw a decrease of 1.62%, bringing it down to $106.89 per barrel. In contrast, U.S. oil prices fell 1.89% to $94.32 per barrel. In an interview with Fox Business Network, Bessent stated, “In the coming days, we may unsanction the Iranian oil that’s on the water, about 140 million barrels.” He emphasized that reintegrating this sanctioned Iranian crude into global markets could help stabilize prices over the next one to two weeks.
The situation in the Strait of Hormuz has garnered attention from Israeli officials as well. Prime Minister Benjamin Netanyahu confirmed Israel’s collaboration with U.S. efforts to reopen this critical maritime chokepoint. He further claimed that Iran has lost its capability to enrich uranium and produce ballistic missiles, suggesting that the ongoing conflict could conclude sooner than anticipated.
In response to the escalating tensions and their impact on the oil market, Citi raised its short-term price outlook for crude oil. The bank now predicts that Brent and West Texas Intermediate (WTI) crude could climb to $120 per barrel within the next one to three months. In more optimistic scenarios, prices could potentially reach $150 per barrel if disruptions escalate further. Notably, Citi’s base case foresees de-escalation within four to six weeks, allowing Brent prices to ease back to between $70 and $80 by year-end.
Furthermore, key crude oil spreads have significantly widened, prompting Citi to adjust its Brent-WTI forecasts to account for increased freight costs and robust demand for inland barrels from the U.S. Gulf Coast. In a separate report, the Wall Street Journal indicated that Saudi oil officials hinted prices could surpass $180 per barrel if the conflict persists through late April.
As the situation develops, market participants will be closely monitoring geopolitical events and U.S. policy changes regarding Iranian oil. For real-time updates and expert insights, CNBC remains a trusted source in business news.
This article highlights the intricate dynamics of global oil markets amidst geopolitical tensions and could serve as a vital resource for understanding future price trajectories.
Original Source: https://www.cnbc.com/2026/03/20/oil-wti-brent-us-weighs-releasing-sanctioned-iranian-crude.html
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Publish Date: 2026-03-20 11:20:00
