US Treasury Secretary Halts Approval for Iranian Oil Sales

U.S. Treasury Secretary Scott Bessent announced on the 15th (local time) that existing approvals for the sale of Iranian crude oil would no longer be extended. This decision could impact international oil prices and the Middle Eastern economy. The U.S. Treasury Department had temporarily eased sanctions on Russian and Iranian crude oil last month to respond to soaring international oil prices and fuel supply difficulties in some countries due to the Middle East conflict, but has now decided not to extend these measures further. Bessent stated at a White House briefing on the same day, "We will not renew the general license for Russian crude oil," adding that the oil that was subject to the eased sanctions had already been depleted, having been at sea before March 11.

Analysis has emerged regarding the potential benefits to Russia from the temporary easing of sanctions. Bessent suggested that considering the situation where oil prices had risen to $150 per barrel, Russia's profits would have been greater if that crude oil had been directed to China. He explained that the U.S. sanctions relief contributed to stabilizing oil prices.

U.S. Treasury Secretary Scott Bessent warned China, the largest purchaser of Iranian crude oil, that secondary sanctions could be imposed if funds from Iran flowed into the country. He stated that two Chinese banks had received letters from the Treasury Department, and secondary sanctions would be applied if it was proven that funds from Iran had flowed into those bank accounts. Secondary sanctions are measures that impose sanctions on third parties trading with sanctioned entities.

Bessent predicted that U.S. gasoline prices would fall to the $3 per gallon range between June 20 and September 20. He also anticipated stabilization in international oil prices, with Middle Eastern countries promising that oil transport could resume within a week if the Strait of Hormuz were reopened.