U.S. allows sale of stranded Iran oil to cap fuel-price rises

The US has allowed the sale of Iranian oil and petrochemical products that have been loaded onto tankers, its latest effort to counter rising oil prices due to the Middle East war.

The Department of Treasury issued a general license for energy that’s already on vessels as of Friday, with such purchases authorized through April 19. The measure follows similar moves for Russian oil on the water in a bid to ease an unprecedented fuel supply crunch caused by the war.

For now, the vast majority of Iran’s oil is bought by Chinese customers — mainly independent refiners known as teapots. While the US waiver would widen the pool of potential buyers, any new customers would still face the challenge of structuring deals while other restrictions on Iran, including its access to international financial markets, remain in place.

The US and Israeli war on Iran has led to a virtual halt in shipments through the Strait of Hormuz, where 20% of global oil typically transits, with only a trickle of Iranian and Chinese tankers getting through. Brent crude prices have surged more than 50% this month, while Middle Eastern oil like Abu Dhabi’s flagship Murban grade has doubled in value.

The resulting spike in fuel prices for American consumers is heaping immense pressure on the US president and the Republican Party leading up to the November midterm elections. Prolonged inflationary pressures would undercut the GOP’s ability to retain control of the Senate...