Facing a sustained oil price crisis, Treasury Secretary Scott Bessent revealed Thursday that the United States may temporarily lift sanctions on Iranian crude oil stranded on tankers in international waters. The proposal, which could release approximately 140 million barrels into global markets, is part of the administration’s emergency response to oil prices that have stayed above $100 per barrel since Iran’s Strait of Hormuz closure.
The Hormuz blockade has been in effect for close to two weeks, removing an estimated 10 to 14 million barrels per day from global oil supply. The resulting price surge has affected economies across Asia, Europe, and beyond, raising urgent questions about how quickly global leaders can restore some degree of supply stability.
Bessent described the approximately 140 million barrels of Iranian crude on tankers, originally destined for China, as a two-week supply buffer waiting to be unlocked. By issuing a targeted sanctions waiver, the Treasury could redirect this oil to global markets during a critical phase of the US effort to resolve the Hormuz crisis.
The administration has previously used this kind of waiver for Russian oil, freeing approximately 130 million barrels for global sale. An additional unilateral US Strategic Petroleum Reserve release beyond the 400 million barrel G7 joint commitment is also planned, with the administration making clear it will not intervene in financial oil markets.
The response from independent experts was skeptical. Analysts in the sanctions and security policy fields warned that allowing Iran to profit from oil sales — even stranded crude under a narrow waiver — would provide the Iranian regime with financial resources that could fund military operations and proxy forces. Critics called the plan short-termist and warned of unintended consequences for the broader US Iran policy.