US Imposes Sanctions Relief for Oil Producers Amid Iran Conflict

US President Donald Trump Announces Plans to Lift Sanctions on Oil-Producing Countries

In a statement made at a news conference in Miami, Florida, US President Donald Trump announced that his administration will lift some sanctions on oil-producing countries aimed at reducing energy prices. The move comes as crude oil prices have plummeted below $90 a barrel after surging to nearly $120 over the past 24 hours.

Trump stated that the sanctions would be lifted “until this situation straightens out.” He did not specify which countries would be subject to sanctions relief, but it is reported that he is considering easing sanctions on Russia as part of his plans. The US Treasury Secretary had previously announced a 30-day waiver on sanctions on Russian oil sales to India.

The announcement follows the launch of joint strikes by the US and Israel on Iran on February 28, which has led to a significant increase in crude prices. Global energy markets have been affected by the conflict, with major Gulf region producers cutting production due to concerns about supply disruptions. Analysts predict that oil prices could rise to $150 or even $200 a barrel if the Strait of Hormuz remains effectively closed.

Trump’s comments on the war on Iran were mixed, stating that he expected the conflict to be over “very soon” but also emphasizing the need for further military action until the enemy is defeated. The US and Israel have launched strikes on Iranian oil facilities and drone attacks on oil and gas infrastructure in regional allies, including Qatar, Saudi Arabia, and Kuwait.

As of 02:00 GMT on Tuesday, Brent crude was hovering at around $84 a barrel.

Source: Al Jazeera