Trump says some oil sanctions will be lifted as crude surges during Iran war

“We’re also waiving certain oil-related sanctions to reduce prices,” Trump told reporters after talks with Russian President Vladimir Putin and as he mentioned Chinese President Xi Jinping.

• Trump temporarily eases oil sanctions to curb rising prices
• Brent crude briefly tops $100 amid Strait of Hormuz disruptions
• Trump warns Iran against disrupting global oil supply

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With global crude prices climbing sharply during the ongoing conflict with Iran, US President Donald Trump said his administration will temporarily ease certain restrictions related to oil in an effort to cool the market.

Speaking to reporters on Tuesday, Trump indicated that Washington is ready to roll back select penalties tied to oil trade until the situation stabilizes. "We're also waiving certain oil-related sanctions to reduce prices," he said. He added that the relief would remain in place only for the time being, stating, "We're going to take those sanctions off till this straightens out."

Oil prices have climbed rapidly since the start of the conflict, intensifying pressure on the White House to contain the economic fallout. Brent crude, the global benchmark, briefly crossed the $100-a-barrel mark — the first time it has done so in roughly four years — before easing slightly below that level.

A major factor behind the surge has been the near halt of shipping through the Strait of Hormuz. The strategic waterway handles about one-fifth of the world’s crude shipments, and maritime traffic there has slowed dramatically since the war erupted on February 28.

The spike in energy costs is also becoming a domestic political challenge for Trump. Higher gasoline prices are already being felt by consumers across the United States, adding to concerns ahead of the midterm elections later this year, when the state of the economy is expected to influence voters.

Trump, however, insisted that the price shock will not last long. He has repeatedly argued the surge will prove temporary and should ease once the conflict comes to an end.

At the same time, the president issued a warning to Tehran, saying the United States would respond forcefully if Iran attempts to disrupt global oil supplies. "I will not allow a terrorist regime to hold the world hostage and attempt to stop the globe's oil supply," he said. "And if Iran does anything to do that, they'll get hit at a much, much harder level."