MARKET STRUCTURE · ASIA
U.S. issues temporary sanctions waiver for Iranian oil shipments
Change
The U.S. Treasury's Office of Foreign Assets Control issued a temporary waiver exempting sanctions for Iranian crude loaded on any vessel on or before March 20 and discharged by April 19.
Why it matters
The U.S. Treasury's Office of Foreign Assets Control issued a temporary waiver exempting sanctions for Iranian crude loaded on any vessel on or before March 20 and discharged by April 19. The waiver applies to oil carried on any vessel, including tankers previously under sanction, provided the loading and discharge occur within the specified windows. It is the third temporary U.S. sanctions waiver on oil since the start of the war. Refiners in India plan to resume buying Iranian oil, and refiners elsewhere in Asia are examining purchases under the waiver. Consultancy Energy Aspects estimated 130–140 million barrels of Iranian oil are on water, and regional refineries have run at lower rates and cut fuel exports amid a near-closure of the Strait of Hormuz.
Implications
- · Indian refiners plan to resume purchases of Iranian crude that meet the waiver loading and discharge windows.
- · Other Asian refiners are examining purchases of Iranian oil under the waiver.
- · Some Indian buyers previously rushed to book Russian crude after an earlier temporary U.S. sanctions lift.
- · Regional refinery throughput and fuel export volumes have been reduced amid constrained flows through the Strait of Hormuz.
Who is affected
- · Refiners
- · Refinery procurement and trading teams
- · Oil traders
- · Shipping operators and charterers
What to watch
- · Loading deadline: March 20
- · Discharge deadline: April 19
Source
Topics
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