US pauses sanctions on Iranian oil stranded on tankers under 1-month license, here's why

The US government has paused sanctions on Iranian oil stranded on tankers at sea until April 19. This temporary move aims to ease rising oil prices amid global supply concerns.

The sanction relief applies to Iranian oil loaded on ships as of the previous Friday. The Trump administration issued a one-month licence to allow these shipments to proceed without penalty. US Treasury Secretary Scott Bessent noted that the pause is intended to prevent China from becoming the sole beneficiary of Iranian oil amid ongoing restrictions.

This one-month licence permits the sale of Iranian oil loaded onto ships before the deadline, subject to restrictions, including bans on sales involving North Korea or Cuba.

Alongside the Iranian oil sanction pause, the US also eased sanctions on specific Russian oil shipments for 30 days. This step is part of efforts to increase global oil supplies during the conflict in Iran.

Meanwhile, United Airlines is adjusting its outlook on fuel costs. United Airlines CEO Scott Kirby shared in a message to employees that jet fuel prices, which have more than doubled in three weeks, could cost the airline $11 billion annually if they remain at current levels.

Kirby said in a letter to employees, "I think there’s a good chance it won’t be that bad, but ... there isn’t much downside for us to preparing for that outcome." This reflects the airline's cautious approach amid volatile energy markets.

Brent crude oil prices have fluctuated significantly, moving from about $70 per barrel before the Iran war to a peak of $119.50 this week. This volatility has heightened concerns across industries dependent on fuel.