Treasury Secretary Scott Bessent revealed Thursday the Trump administration is seriously considering a temporary lifting of US sanctions on Iranian crude oil stranded on tankers at sea. The potential measure is designed to address a severe global oil supply shortage caused by Iran’s closure of the Strait of Hormuz, which has pushed crude prices above $100 per barrel for close to two weeks.
The Hormuz blockade has been removing between 10 and 14 million barrels of oil per day from global markets, creating one of the most significant supply disruptions of the current decade. The resulting price surge has prompted emergency discussions among major oil-consuming nations and international financial institutions.
Bessent disclosed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters — oil originally destined for China — and said a temporary waiver could allow this supply to enter global markets. He estimated the oil would provide approximately two weeks of supply relief during the critical phase of the US effort to resolve the Hormuz crisis.
The Treasury’s approach mirrors a previous waiver for Russian oil that added approximately 130 million barrels to world supply. Bessent confirmed an additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated drawdown is being planned, while emphasizing the administration will not intervene in financial oil markets.
Experts raised concerns about the long-term implications. Policy analysts and sanctions specialists warned that any financial benefit from Iranian oil sales would flow to the Tehran government, potentially supporting military activities and proxy operations in the region. Critics broadly described the proposal as a stopgap measure that carries significant strategic risks, including the possibility of strengthening the very regime the US is working to pressure.