US floods market with 140 million barrels of Iranian oil to ease oil price pressure

The US Treasury Department on Friday announced a new measure aimed at countering Iran’s influence over global energy markets, unveiling a temporary authorization to release millions of barrels of Iranian oil currently stranded at sea.

In a sharply worded statement, Treasury Secretary Bessent described Iran as “the head of the snake” in global terrorism, accusing Tehran of orchestrating attacks on critical energy infrastructure and destabilizing key shipping routes, including the Strait of Hormuz. 

The remarks came as part of a broader defense of President Donald Trump’s ongoing initiative, dubbed “Operation Epic Fury,” which officials say is designed to weaken Iran’s economic leverage while bolstering global energy supply.

Under the new policy, the Treasury will permit the limited sale of approximately 140 million barrels of Iranian oil already in transit or in storage offshore. Officials emphasized that the authorization is narrowly tailored and short-term, applying only to existing supplies and not allowing any new production or purchases from Iran.

“At present, sanctioned Iranian oil is being hoarded by China at discounted prices,” the statement said. “By temporarily unlocking this supply, the United States will expand global energy availability and help ease short-term market pressures caused by Iran’s own actions.”

Treasury officials framed the move as both an economic and strategic maneuver-one that uses Iran’s own resources against it. They stressed that despite the temporary easing, Tehran would face significant barriers in accessing any resulting revenue, as U.S. sanctions on Iran’s financial system remain firmly in place.

The announcement comes amid heightened concerns over global energy stability, following reported disruptions linked to tensions in the Middle East. The administration argues that increasing supply now will prevent price spikes and reinforce market confidence.

According to the Treasury, the Trump administration has already worked to bring roughly 440 million additional barrels of oil into global markets through a combination of domestic production increases and coordination with international partners.

“Any short-term disruption,” the statement concluded, “will ultimately translate into longer-term economic gains for Americans—because there is no prosperity without security.”