Treasury Secretary Scott Bessent signaled Thursday that the United States may ease sanctions on Iranian crude oil stranded on tankers, in an effort to boost global oil supply that has been severely reduced by Iran’s Strait of Hormuz blockade. The potential measure is part of a broader package of supply-side interventions being considered by the administration as oil prices hold above $100 per barrel.
Iran’s Hormuz blockade has created a daily supply deficit estimated at between 10 and 14 million barrels, a disruption that has now lasted for close to two weeks. The resulting price surge has raised economic concerns across the globe, with oil-importing nations particularly vulnerable to the sustained increase in energy costs.
Bessent said approximately 140 million barrels of Iranian crude are currently stranded on tankers that had been heading toward Chinese ports. He described a targeted temporary waiver as a way to redirect this oil to global buyers, providing roughly two weeks of supply relief while the US continues its response to the Hormuz closure.
The Treasury has previously used this kind of mechanism for Russian oil, adding approximately 130 million barrels to world 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 maintaining its stance against any intervention in financial oil market instruments.
National security and sanctions experts were broadly critical. They argued that allowing Iranian oil to be sold, even under the strictest temporary waiver, would generate revenue for the Iranian government that could fund military operations and proxy activities. Critics warned the plan creates a troubling precedent, suggesting that sanctions on oil exporters can be selectively relaxed during periods of market stress, regardless of the broader geopolitical consequences.
