Treasury Secretary Scott Bessent reached a significant milestone in the administration’s oil market crisis response Thursday when he announced the US may temporarily lift sanctions on Iranian crude oil stranded on tankers in international waters. The proposal represents one of the most ambitious supply-side interventions considered by Washington in response to oil prices above $100 per barrel caused by Iran’s Hormuz blockade.
Iran’s Strait of Hormuz closure has been a watershed moment for global energy markets, removing between 10 and 14 million barrels of daily supply from global circulation for close to two weeks. The sustained price surge has affected every corner of the global economy and has placed intense pressure on the administration to respond with supply solutions of matching scale.
Bessent said approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally destined for Chinese ports. A targeted temporary waiver could redirect this oil to global buyers, providing roughly two weeks of supply relief while the US campaign to resolve the Hormuz crisis continues.
The Treasury has previously used this kind of waiver for Russian oil, which added approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also planned, alongside the administration’s firm stance against any financial market intervention.
Policy analysts and sanctions experts marked the occasion with concern as much as interest. They warned that any oil revenue flowing to Tehran, however narrowly the waiver is designed, would provide the Iranian government with financial resources for military and proxy activities. Critics described the proposal as a landmark but potentially counterproductive policy decision, one that trades a short-term supply fix for a significant and lasting strategic cost.
