Trump says some sanctions to be lifted on oil producers amid Iran war

Crude oil prices plunge below $90 a barrel following an earlier surge to almost $120 in price swing over 24 hours.

United States President Donald Trump has said his administration will lift some sanctions on oil-producing countries to keep energy prices down amid the US and Israel’s war on Iran.

Trump made the comments on Monday after a rollercoaster 24 hours that saw crude oil prices soar to nearly $120 a barrel before dropping below $90.

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“So, we have sanctions on some countries. We’re going to take those sanctions off until this straightens out,” Trump said at a news conference at his golf club in Miami, Florida.

“Then, who knows, maybe we won’t have to put them on – there’ll be so much peace,” he said.

Trump did not specify which countries would be subject to sanctions relief. Washington currently maintains sanctions on the oil sectors of Russia, Iran and Venezuela.

The Reuters news agency, citing multiple unnamed sources, reported on Monday that Trump was considering easing sanctions on Russia as part of his plans to keep oil prices down.

US Treasury Secretary Scott Bessent last week announced a 30-day waiver on sanctions on Russian oil sales to India amid concerns about growing pressure on global supplies.

Crude oil prices continued their retreat after Trump’s comments, with Brent crude hovering at around $84 a barrel as of 02:00 GMT on Tuesday.

Global energy markets have been on tenterhooks since the US and Israel launched joint strikes on Iran on February 28, with crude prices surging as much as 50 percent compared with before the conflict.

Iranian threats have effectively closed the Strait of Hormuz, through which about one-fifth of the global oil supply transits, forcing major Gulf region producers to cut production amid an accumulating backlog of supply, as shipping has largely halted.

Global energy supplies have also been threatened by Israeli strikes on Iranian oil facilities and drone attacks, widely blamed on Iran, on oil and gas infrastructure in US allies in the region, including Qatar, Saudi Arabia, and Kuwait.

Analysts have predicted that oil prices could rise to $150 or even $200 a barrel if the strait remains effectively closed for a prolonged period.

“I would say that it is possible for prices to reach new all-time highs in the coming weeks, but this is contingent on the Strait of Hormuz remaining closed in the weeks ahead,” Homayoun Falakshahi, the head of crude oil analysis at global trade intelligence firm Kpler, told Al Jazeera.

“If the strait stays closed through April, then prices could continue to jump,” Falakshahi said.

Trump, who campaigned on ending the US’s so-called “forever” wars in his 2024 election bid, on Monday offered conflicting signals about how long the war on Iran might last.

During his news conference, Trump said he expected the war to be over “very soon”, but that attacks on Iran would not stop “until the enemy is totally and decisively defeated”.

Trump made the remarks shortly after he told Republican lawmakers in a speech that the US had “already won in many ways, but we haven’t won enough”.

Earlier on Monday, Trump said in an interview with CBS News that the war was “very complete, pretty much” and that his military campaign was “very far ahead of schedule”.