Tehran: The Iranian Oil Ministry has issued a firm denial regarding the existence of “stranded” or “floating” crude oil, directly contradicting recent assertions by the United States. In a statement released through the Iranian consulate in Mumbai on Saturday, March 21, 2026, Tehran clarified that it currently possesses no surplus crude available for international markets. The Iranian officials characterized the latest US policy shift as an attempt to manage market sentiment and reassure global buyers amidst the extreme volatility caused by the ongoing West Asia conflict.
This diplomatic friction follows a Friday announcement from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), which authorized a temporary easing of sanctions on Iranian-origin petroleum. The “narrowly tailored” license allows for the sale, delivery, and even import into the United States of Iranian oil that was already loaded on vessels as of March 20, 2026. This authorization is scheduled to remain in effect until April 19, 2026, and is specifically designed to unlock approximately 140 million barrels of oil that Washington believes is currently “stranded at sea” or being held by China.
US Treasury Secretary Scott Bessent explained that the move is part of a broader strategy to stabilize global energy markets and relieve supply pressures. By allowing this existing supply to reach the world market, the US aims to lower prices while simultaneously continuing its “Operation Epic Fury” pressure campaign. Bessent noted that the policy does not permit new production or purchases but focuses exclusively on oil already in transit. He emphasized that the Trump administration is working to bring a total of 440 million additional barrels to the market to undercut Iran’s leverage over the Strait of Hormuz.
Despite the US efforts to increase supply, the strategic waterway of Hormuz remains effectively closed to most maritime traffic as the conflict enters its fourth week. The Iranian denial of having available surplus suggests that the “140 million barrels” cited by the US may be harder to access than anticipated, potentially spooking energy markets further. While the US continues to promote a “pro-energy” domestic agenda to drive production to record levels, the immediate disruption in the Gulf continues to strain diplomatic relations and global fuel costs.
