Washington: The US Treasury Department issued a temporary authorization Friday permitting the sale of Iranian oil stranded at sea, according to Treasury Secretary Scott Bessent.

According to Anadolu Agency, Bessent stated that sanctioned Iranian oil was being "hoarded" by China at discounted prices, and unlocking the supply would bring approximately 140 million barrels to global markets. The measure is intended to address short-term supply pressures exacerbated by the ongoing conflict with Iran.

"We will be using the Iranian barrels against Tehran to keep the price down," Bessent emphasized. He explained that the short-term authorization is "strictly limited to oil that is already in transit and does not allow new purchases or production." This move is seen as a strategic attempt to stabilize the global oil market amidst geopolitical tensions.

The decision reflects the US's effort to manage the economic implications of the war while navigating complex international relations. The impact of these additional barrels on the global oil market remains to be observed as the situation develops.