Trump Considers Lifting Iran Sanctions to Lower Oil Prices

President Donald Trump’s administration is preparing to lift sanctions on approximately 140 million barrels of Iranian crude oil currently held on tankers, Treasury Secretary Scott Bessent announced Thursday, a move that comes as crude oil prices surge and the war in Iran continues.

Bessent, speaking to Fox Business Network, indicated the administration could allow the sanctioned oil to trade at full market rates. “In the coming days, we may unsanction the Iranian oil that’s on the water,” he said. “So, depending on how you count it, that’s 10 days to two weeks of supply.”

The decision represents a significant reversal for the Trump administration, which had spent years building up sanctions against Iran’s oil exports. These measures, initially imposed during Trump’s first term after withdrawing from the 2015 nuclear deal, aimed to cripple Tehran’s primary revenue source by prohibiting any foreign entity from buying, selling, or transporting Iranian crude, under threat of losing access to the U.S. Financial system. 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, according to reports.

The move to potentially ease sanctions comes as oil prices have climbed above $100 a barrel and gasoline prices approach $4 a gallon, according to recent reports. President Trump stated he would take whatever action was necessary to lower oil prices.

While lifting the sanctions could provide a financial boost to Tehran, the extent of that benefit remains uncertain. Iran has a history of selling sanctioned crude covertly, primarily to China, often at substantial discounts. Allowing open trade at market rates could increase revenue per barrel. The administration’s action also marks the second emergency unsanctioning in seven days.

The administration’s shift in policy follows the suspension of the Jones Act, an attempt to alleviate shipping constraints that ultimately failed to calm markets, according to the Washington Post.