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Oil falls as U.S. weighs releasing sanctioned Iranian crude to cool prices
U.S. oil prices extended their decline after Treasury Secretary Scott Bessent said Washington may soon lift sanctions on Iranian crude stored aboard tankers, a move aimed at easing price pressures following Iran’s closure of the Strait of Hormuz.cnbc.com - Oil wti brent US weighs releasing sanctioned iranian crudeWhat the net sifter says about that oil:
As of March 2026, the US is considering lifting sanctions on approximately 140 million barrels of Iranian crude
stored on tankers, with significant amounts located in international waters near Malaysia (about 30 million barrels) and in floating storage off the coast of China. This move aims to ease global price surges, say Argus Media and this article from The Economic Times.
Key Locations of Iranian Crude Storage:
Near Malaysia: A key hotspot where tankers await ship-to-ship transfers, according to data from Kpler.
Off the Chinese Coast/Shandong: Roughly 40 million barrels are in onshore storage in Shandong, with additional floating storage near the coast, notes Argus Media and this article from Time Magazine.
"On the Water": Much of the 140 million barrels is on tankers that have been stuck at seaI had proposed that Trump the Mighty was letting Iranian crude sail, knowing it was heading for China, to butter up Xi, and that forbearance may evaporate with the meeting postponed.
Seems it would be more in character for the Pirate King to seize the tankers and cargoes as "war prizes", sell the oil to China, and pocket the proceeds.
Steve
