WASHINGTON: US Treasury Secretary Scott Bessent said Thursday that Washington might “unsanction” Iranian oil that is already being shipped, as energy prices soar due to the war in the Middle East.
Bessent’s comments to Fox Business came as oil and gas prices made a renewed surge after Iran hit the world’s biggest liquefied natural gas (LNG) facility in Qatar and threatened to destroy the region’s energy infrastructure.
Bessent added in the interview that the US government could also release more oil from its strategic reserves.
US President Donald Trump’s administration has been scrambling to rein in rocketing energy costs after US-Israeli strikes on Iran on February 28.
READ MORE: Trump vows no more attacks by Israel on Iran gas field after it ‘violently lashed out’
Tehran’s retaliation brought commercial shipping through the Strait of Hormuz to a virtual halt, snarling energy supply chains.
Around a fifth of global crude oil and liquefied natural gas passes through the critical waterway during peacetime.
Already, international benchmark Brent surged 10 percent earlier before easing to a 5.0 percent increase at $112.76 per barrel.
Recently, the United States also temporarily allowed the sale of sanctioned Russian oil that is at sea. On Wednesday, Trump temporarily waived a century-old maritime shipping law in an attempt to help ease energy prices.
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