【Iran Crisis】US Benzent: May further relax restrictions on Russian crude oil, criticizes major oil market analysis as "completely wrong"

Middle East shows no signs of ceasefire. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business that the U.S. may lift more Russian oil sanctions and dismissed JPMorgan’s oil market analysis as “completely flawed.”

To ease the temporary global oil shortage, the U.S. relaxed restrictions on Indian refiners purchasing Russian crude oil on Thursday, effective until the 30th. He pointed out that there are “hundreds of millions of dollars’ worth of sanctioned” oil at sea, and in essence, by lifting sanctions, the Treasury can increase oil supply.

Criticizing JPMorgan’s report as irresponsible—based on flawed assumptions

The passage through the Strait of Hormuz is nearly halted, and the market is also watching whether the U.S. International Development Finance Corporation (DFC) has the capacity to provide emergency insurance for tankers passing through the Persian Gulf. A research report released by JPMorgan on Wednesday estimates that DFC currently has only about $154 billion in available loan capacity, and the private market cannot provide the approximately $352 billion in insurance coverage needed for ships heading to the Persian Gulf. Therefore, it believes DFC’s current capacity is “insufficient to manage the risks.”

Bessent criticized, “I can’t tell you how wrong that is,” calling the report poor and irresponsible.

He explained that DFC’s insurance coverage is only needed when ships pass through high-risk areas like the Strait of Hormuz and the Persian Gulf. Once they leave the area, ships revert to regular private insurance mechanisms, so the estimate is based on a flawed assumption.

U.S. $20 billion maritime reinsurance plan to ease Middle Eastern oil trade pressure

On the same day as Bessent’s interview, the U.S. government announced an additional $20 billion reinsurance plan specifically aimed at restoring shipping activities through the Strait of Hormuz.

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