Trump administration eases sanctions on Iran to reduce oil prices

 

 

P.P. Cherian

Washington: In order to control the rising global oil prices, the United States has temporarily allowed the purchase of Iranian oil stored on ships at sea. The Trump administration has now partially relaxed the strict sanctions imposed in the context of the war with Iran.

The permission is for the purchase of Iranian oil loaded on ships until Friday morning. This relaxation will continue until April 19.

The main goal is to reduce prices by increasing the availability of oil in the market. US Treasury Secretary Scott Besant said that this will also prevent China from acquiring this oil at a low price.

Despite the relaxation, the United States has made it clear that economic pressure on Iran will continue and that the money obtained from the sale will not be easily available to Iran.

A similar relaxation was also given to Russian oil last week. Democrats have come out alleging that Trump's moves will help enemy countries financially.

The current price hike is due to disruptions in oil supplies due to tensions in the Strait of Hormuz. The United States is taking steps to overcome this, including releasing oil from its reserves.