The US Treasury Department issued a temporary authorization Friday permitting the sale of Iranian oil stranded at sea, according to Treasury Secretary Scott Bessent.

Bessent said sanctioned Iranian oil was being "hoarded" by China at discounted prices, and unlocking the supply would bring approximately 140 million barrels to global markets.

"We will be using the Iranian barrels against Tehran to keep the price down," he said.

The short-term authorization is "strictly limited to oil that is already in transit and does not allow new purchases or production," he said, framing the move as a way to relieve temporary supply pressures caused by the war with Iran.