PiCK
US Reimposes Iranian Crude Sanctions, Leaving 63 Million Barrels Stranded at Sea
Summary
- The US withdrew its sanctions waiver on Iranian crude, leaving about 63 million barrels of Iranian oil stranded at sea.
- The US OFAC canceled the temporary general license that had allowed sales of Iranian crude, putting pressure on Iranian oil exports again.
- The withdrawal of the US sanctions waiver pushed Brent crude, the global benchmark, back to about $76 a barrel.
Forecast Trend Report by Period
About 63 million barrels of Iranian crude are being held at sea after the US withdrew sanctions relief for the oil.
BlockBeats reported on July 8 that roughly 63 million barrels of Iranian crude remained stranded offshore as of that day. The backlog followed Washington’s decision to revoke a sanctions waiver for Iranian oil. Most tankers are staying in the Persian Gulf and Asian waters and have yet to find buyers, the outlet reported.
The US Treasury Department’s Office of Foreign Assets Control said on July 7 that it was canceling a 60-day temporary general license issued on June 21 to allow sales of Iranian crude. The move effectively restored sanctions on Iranian oil that had been temporarily eased during a 60-day follow-up negotiation period after the US and Iran signed a memorandum of understanding to end the war.
Outside China, no Asian country is known to have openly purchased Iranian crude, the report said. Iranian oil exports are coming under pressure again after the abrupt US policy reversal and sanctions from the US and Europe, according to BlockBeats.
International oil prices are also rising again after the US withdrew the waiver. Brent crude, the global benchmark, climbed back to about $76 a barrel on July 8, according to TradingView.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul