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The US Treasury Department has issued a 30-day authorization allowing for the delivery and sale of Iranian-origin crude oil and petroleum products currently on loaded vessels. In a swift response, Indian refiners have announced plans to resume buying Iranian oil to capitalize on the temporary waiver. Other refiners across Asia are also examining a return to Iranian crude purchases to alleviate the ongoing energy crunch. This move comes amid severe supply disruptions caused by the military conflict involving the U.S., Israel, and Iran. Treasury Secretary Scott Bessent previously indicated that this measure aims to cool record-high prices following the closure of the Strait of Hormuz. Consequently, oil benchmarks like Brent Crude and WTI Crude are expected to face downward pressure as physical supply concerns begin to ease.
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