Gulf crisis fallout: US temporarily allows sale of some Russian oil after Iran threatens to 'set region’s oil, gas on fire'

The United States has temporarily permitted the sale of Russian oil already in transit, according to a treasury department notice issued on Friday. This comes as energy prices surged following US-Israeli strikes on Iran that pushed the Middle East into war.The treasury granted a license allowing transactions involving Russian crude oil and petroleum products loaded onto vessels on or before 12.01am on March 12, with the authorization remaining in effect until April 11. The announcement came after Iran threatened to set region’s oil and gas on fire if its energy infrastructure was targeted."We will set the region's oil and gas on fire with the slightest attack on Iran's energy infrastructure and ports," said a spokesman for the Iranian military's central operational command, known as Khatam al-Anbiya.Oil prices surged, with Brent crude closing above $100 a barrel for the first time since August 2022, after Iran vowed the United States would “regret” launching military action against it.Brent crude rose 9.2 per cent to settle at $100.46 a barrel, while the US benchmark, West Texas Intermediate, jumped 9.7 per cent to $95.73.Equity markets slipped as concerns mounted over a prolonged Middle East conflict. US and Israeli strikes on Iran continued, while Tehran’s retaliation effectively halted most trade through the Strait of Hormuz.Investors also found little reassurance in US President Donald Trump’s statement that preventing Iran from obtaining a nuclear weapon was a greater priority for him than keeping oil prices under control.