US Sanctions Impact Iranian Oil Trade and Global Energy Transactions

Iran’s oil is increasingly being stored offshore in Southeast Asia instead of reaching its buyers, as recent U.S. sanctions on tankers have made Chinese buyers more cautious. As of mid-December 2024, over 16 million barrels of Iranian oil were stranded at sea, marking the highest volume in five months. This surge follows a series of U.S. sanctions targeting entities and vessels transporting Iranian oil.

The sanctions are aimed at curtailing Iran’s ability to finance its nuclear program, weapons systems, and support for militant proxies like Hezbollah and Hamas. Despite these measures, Iran continues to rely on a complex network of vessels and companies to move its crude oil, with the U.S. designating several of these for violating trade restrictions.

Meanwhile, Turkey has secured a waiver from the U.S. to continue paying for Russian natural gas via Gazprombank, which was sanctioned in November 2024. This development comes amid increasing sanctions on Russian financial institutions and is part of the broader effort to restrict Russia's access to the international financial system.

Countries like Turkey and Hungary, heavily reliant on Russian energy, have sought exemptions to continue payments for gas despite the sanctions. This situation highlights the growing tension between energy needs and geopolitical restrictions in the global market.