Treasury Secretary Scott Bessent outlined a significant potential policy action Thursday, stating the US may temporarily remove sanctions on Iranian crude oil currently stranded on tankers in international waters. The measure, he argued, would add critical short-term supply to global markets disrupted by Iran’s blockade of the Strait of Hormuz.
The Hormuz blockade has been one of the defining disruptions to global energy markets in recent years, removing an estimated 10 to 14 million barrels per day from circulation and driving crude prices above $100 per barrel. The sustained price surge has created considerable economic strain for oil-importing nations and has pushed the administration to seek emergency supply solutions.
Bessent said approximately 140 million barrels of Iranian crude are aboard tankers in international waters, oil that had been bound for China. By temporarily lifting sanctions, the Treasury could allow this oil to reach global buyers and provide an estimated two-week supply cushion as the US continues its broader campaign against the Hormuz closure.
The approach draws on precedent from a Treasury waiver for Russian oil, which added approximately 130 million barrels to global supply. Bessent also confirmed a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is planned, with the administration firmly against engaging in financial oil market intervention.
Independent experts were critical. Compliance professionals and national security analysts warned that allowing any Iranian oil sales to proceed would generate revenue for the Iranian government that could fund military operations and regional proxy forces. Several analysts described the plan as providing minimal and temporary market relief in exchange for a potentially significant strategic concession.