Treasury Secretary Scott Bessent suggested Thursday that the United States is prepared to consider lifting sanctions on Iranian oil stranded on tankers as part of an emergency supply effort to stabilize global oil markets. The announcement comes after oil prices have held above $100 per barrel for nearly two weeks due to Iran’s closure of the Strait of Hormuz.
The Hormuz closure has removed between 10 and 14 million barrels per day from global oil supply, creating one of the most significant supply disruptions the market has experienced in recent years. The resulting price surge has had sweeping economic consequences, affecting transportation, manufacturing, and consumer spending globally.
Bessent confirmed that approximately 140 million barrels of Iranian crude — oil previously heading to China — are currently stranded on tankers. He presented a potential sanctions waiver as a means to redirect this oil to global buyers, providing what he estimated would be approximately two weeks of supply support during the ongoing crisis.
Earlier in the crisis, the Treasury issued a similar waiver for Russian oil, adding around 130 million barrels to global supply. Bessent confirmed an additional unilateral US Strategic Petroleum Reserve drawdown beyond the G7’s 400 million barrel coordinated release is also planned, with the administration confirming it will not pursue financial market interventions.
Experts reacted with considerable skepticism. Sanctions analysts and national security specialists warned that any financial benefit from Iranian oil sales would accrue to the Tehran government, providing resources for military activities and regional proxy operations. Critics described the proposal as strategically incoherent, arguing that the US would be simultaneously fighting Iran and providing it with a financial lifeline.