Iran says it has no oil surplus to offer global markets; denial may keep crude prices elevated

Iran has said it has no additional crude oil available for global markets, contradicting recent remarks from the United States that suggested a temporary easing of sanctions could release significant Iranian supply to stabilise prices. The statement has added to uncertainty in an already volatile oil market as tensions in West Asia continue to disrupt trade flows and push crude prices higher.

In a statement issued through Iran’s consulate in Mumbai, officials said the country does not currently have spare oil that can be supplied internationally. “At present, Iran essentially has no floating crude or surplus available for international markets. The US Treasury Secretary’s remarks appear aimed at reassuring buyers and managing market sentiment,” the statement said.

The clarification comes after the United States announced a limited, short-term relaxation of sanctions on Iranian-origin crude that was already loaded on vessels as of March 20. The waiver, which is valid until April 19, allows the delivery and sale of such oil, including imports into the United States, but does not permit new production or fresh purchases. Washington said the move was intended to ease supply pressures in the global market without changing the broader sanctions regime against Tehran.

US Treasury Secretary Scott Bessent had earlier said the authorisation could bring as much as 140 million barrels of Iranian oil into global markets, helping cool prices that have surged since the conflict in the region escalated. Brent crude briefly approached the $120 per barrel mark amid fears of supply disruption, particularly because of concerns over shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.

Iran’s denial, however, raises doubts about how much additional supply can actually reach the market in the near term. Analysts say the statement suggests that most Iranian oil is either already committed to buyers or stored under arrangements that cannot be quickly redirected. The gap between US expectations and Iran’s position could keep prices volatile, especially if geopolitical tensions persist.

The market is also watching Asia closely, as the region depends heavily on Middle East crude for nearly 60% of its imports. Refiners in India and other Asian countries are assessing whether they can resume purchases of Iranian oil under the temporary waiver, but industry sources say companies are waiting for clearer guidance from governments and regulators before making commitments. Payment channels, insurance, and compliance rules remain key hurdles.

Meanwhile, the continuing conflict in West Asia and restrictions on shipping routes have tightened global supply conditions, limiting the ability of producers to quickly increase exports. With Iran signalling that it cannot add meaningful volumes despite the US waiver, traders expect crude prices to remain sensitive to any new disruptions in the region.