The U.S. is at war with Iran.
But plot twist: It's also telling buyers they can purchase Iranian oil - at least the barrels already floating on ships.
That contradiction landed Friday when Treasury Secretary Scott Bessent rolled out a short-term license letting companies buy Iranian crude that was loaded onto tankers before the end of Thursday.
The window closes April 19.
It’s A Price Thing
Roughly 140 million barrels of Iranian oil are sitting on ships right now.
Before the war, most of those barrels were headed to China at bargain prices because sanctions made other buyers too nervous to touch them.
Bessent's argument: Let other countries - India, Japan, Malaysia - compete for those barrels at full price. That puts more oil on the open market and takes away China's discount.
The catch? Iran loaded those ships.
Why Prices Still Haven't Budged
The war has essentially shut down the Strait of Hormuz - think of it like a highway on the sea for oil.
Except this highway carries roughly 20% of the world’s oil through it.
Tanker operators won't risk the route because of Iranian attacks.
So major producers can't get their oil out - even as Iran keeps exporting through the same channel.
The result: roughly one in every ten barrels the world uses each day has been knocked offline.
- That's a hole that 140 million barrels on ships can't fill for long.
The administration is throwing everything it can at the issue.
- A release of 172 million barrels from the country's emergency oil stockpile.
- Waivers that opened up domestic oil shipping to foreign-flagged vessels.
- A similar one-month pass on Russian oil that's already at sea.
Meanwhile, oil is still sitting near its highest levels in years.
