Treasury Secretary Scott Bessent was unusually direct Thursday about the administration’s intentions regarding Iranian oil, saying the US is considering temporarily lifting sanctions on Iranian crude stranded on tankers at sea and using it to keep global prices manageable. Bessent made the announcement as oil markets continued to suffer from the supply shock caused by Iran’s Strait of Hormuz blockade.
The Hormuz closure has removed an estimated 10 to 14 million barrels of oil per day from global circulation for nearly two weeks, with crude prices having climbed and held above $100 per barrel. The disruption has put significant economic pressure on oil-importing nations and has pushed the administration to seek emergency supply solutions of increasing scale and ambition.
Bessent confirmed approximately 140 million barrels of Iranian crude are currently aboard tankers in international waters, oil that had been destined for Chinese ports. He said the administration views this oil as a two-week supply buffer that, if freed from sanctions, could blunt the economic impact of the Hormuz blockade while US diplomatic and military efforts continue.
An earlier Treasury waiver for Russian oil that contributed approximately 130 million barrels to global supply provides the working model for this approach. Bessent also confirmed an additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is being planned, while the administration has firmly ruled out involvement in financial oil market trading.
Independent policy and compliance experts were skeptical. They warned that Iranian oil revenues, even within a narrowly defined waiver, would provide the Tehran government with funds to sustain military operations and support regional proxy forces. Critics argued the plan is strategically self-defeating, providing a short-term economic fix while simultaneously financing an adversary’s capacity to continue the conflict that created the crisis.