U.S. to allow 'dark fleet' tankers to ship oil legally

The U.S. government will authorize the sale of sanctioned oil tankers, allowing these vessels to ship crude legally to help rein in soaring shipping costs, Energy Secretary Chris Wright said during a Citadel Securities event on Monday.

He noted that "a lot of people" approached the government, saying they would buy the sanctioned tankers, fix them up and operate them legally. These vessels transported ‌oil and related products from Venezuela, Iran and Russia.

"We're going to move some of the ships from what I call the 'bad guy fleet' to the 'good guy fleet.' They will not carry sanctioned oil anymore," Wright said.

The official said these dark tankers, numbering "dozens to hundreds," would be converted to legitimate tankers. "There's no removing of sanctions," he clarified.

"They've got to change their stripes," Wright stated. "And so there's an approval process to go through that."

He pointed out the move's impact on shipping costs would take some time, "but it'll be meaningful."

Wright's statements come as rates to ship oil from the Strait of Hormuz and the Red Sea to Asia hit a record high last week, although they have since retreated.

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