US’ Iranian Oil Waiver Won’t Provide Market Relief

27 Mar 2026 Issue: 69 / 13 By: Yesar Al-Maleki

The US decision to grant a 30-day sanctions waiver for Iranian oil is unlikely to attract too many new buyers. Volumes have largely been reserved by Chinese buyers and sanctions compliance remains a concern.

The US’ 30-day waiver allowing the purchase of sanctioned Iranian oil was designed to provide oil markets with some psychological relief, but it will not affect global supply balances. The move theoretically frees up access to up to 170mn barrels of Iranian oil-on-water, including both crude oil and condensate. China is expected to be the primary buyer as financial, legal and logistical constraints deter other potential buyers.

The ‘General License U’ issued by the US Office of Foreign Asset Control allows the “the sale, delivery, or offloading of crude oil or petroleum products of Iranian origin” loaded on vessels as of 20 March. It lasts for 30 days to 19 April. Available volumes will depend on how much has already been reserved by Chinese independent refiners. (CONTINUED - 1080 WORDS)