Trump Administration Issues Controversial Oil Waiver to Iran Amid Ongoing Conflict and Record High Prices

The Trump administration has issued a controversial waiver for 140 million barrels of Iranian oil. Critics warn it funds the enemy while doing little to lower prices.

By: AXL Media

Published: Mar 28, 2026, 6:52 AM EDT

Source: Information for this report was sourced from The Dispatch and FDD Research

The "Battle for the Market" Amid Active War

On the evening of March 20, the Trump administration authorized the sale of approximately 140 million barrels of Iranian oil currently held on tankers at sea. Treasury Secretary Scott Bessent described the move as a strategic intervention to suppress skyrocketing energy costs, which have seen Brent crude surge toward $120 per barrel—nearing the 2008 all-time record. The administration’s logic relies on a modern application of the Trading With the Enemy Act, a World War I-era law that allows for controlled commercial transactions with adversaries if it serves a vital national interest. In this case, that interest is preventing a global economic collapse triggered by the "paralyzed" Strait of Hormuz.

A "Dangerous Lifeline" for the IRGC

National security analysts, led by Max Meizlish of the Foundation for Defense of Democracies (FDD), have slammed the move as "misguided." Critics point out that the waiver lacks the stringent "guardrails" typical of such licenses, such as escrow mechanisms or reporting requirements on who is buying the oil and at what price. This omission effectively allows the Iranian regime to access billions in revenue without transparency. Furthermore, the license remarkably permits the importation of Iranian crude into the United States—a provision not seen in decades, even during the "maximum pressure" campaigns of Trump’s first term.

The "Tehran Toll Booth" and Chinese Influence

The waiver arrives amidst reports that the Islamic Revolutionary Guard Corps (IRGC) has established what some are calling a "Tehran Toll Booth" near Larak Island. The IRGC is reportedly policing the Strait of Hormuz, validating which tankers may pass and allegedly demanding that cargo be traded in Chinese yuan. Analysts warn that by authorizing the sale of Iranian oil without restricting payment channels, the U.S. may be inadvertently entrenching a yuan-denominated transit regime that deepens Beijing’s influence over global energy chokepoints.