An unprecedented proposal from Treasury Secretary Scott Bessent could see the United States temporarily waiving sanctions on Iranian crude oil stranded on tankers, as Washington scrambles to find emergency supply solutions for a global oil market in crisis. Bessent announced the measure Thursday as oil prices have remained stubbornly above $100 per barrel since Iran’s Hormuz blockade began.
Iran’s closure of the Strait of Hormuz has created a supply gap of an estimated 10 to 14 million barrels per day, one of the largest and most sudden disruptions to global oil supply in recent years. The sustained price surge has caused significant economic hardship for oil-importing countries and has placed enormous pressure on the administration to act quickly and decisively.
Bessent revealed that approximately 140 million barrels of Iranian crude are currently on tankers in international waters, oil that had been destined for Chinese buyers. A targeted temporary sanctions waiver could release this oil to global markets, he said, providing roughly two weeks of supply relief while the US campaign against the Hormuz blockade continues.
The Treasury’s approach is modeled on a previous waiver for Russian oil stranded at sea, which added approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also being prepared, with the administration maintaining a clear stance against financial market intervention.
Analysts and experts from the sanctions and security fields were not convinced by the plan’s strategic logic. They argued that allowing Iran to benefit from oil revenues, even within a tightly defined temporary waiver, would provide financial support to the Iranian government’s military operations and regional proxy activities. Critics warned the plan could simultaneously achieve modest price relief and meaningfully strengthen an adversary’s capacity to continue the conflict.