In a policy announcement that turned heads in financial and diplomatic circles Thursday, Treasury Secretary Scott Bessent said the US is seriously weighing a temporary lifting of sanctions on Iranian oil currently stranded on tankers. The measure, Bessent argued, would help offset the supply disruption caused by Iran’s deliberate blockade of the Strait of Hormuz.
The Hormuz blockade has become one of the defining economic crises of the current year, removing between 10 and 14 million barrels per day from global markets and pushing crude prices above $100 per barrel for nearly two weeks. The price surge has drawn urgent responses from governments, central banks, and international energy bodies around the world.
Bessent said the 140 million barrels of Iranian crude floating on tankers — oil originally bound for Chinese consumers — represents a ready-made supply buffer. He characterized the potential waiver as strategic, arguing that redirecting Iran’s own oil to depress global prices effectively turns Iran’s export capacity against its own economic warfare strategy.
The Treasury’s broader response package includes an additional unilateral release from the US Strategic Petroleum Reserve beyond the 400 million barrel G7 coordinated effort. Bessent repeatedly emphasized that the administration’s interventions would be confined to the physical oil market and would not extend to financial market instruments or futures contracts.
Experts challenged both the concept and the execution of the plan. Sanctions compliance professionals warned that the sale of Iranian oil, even under a temporary and narrow waiver, would provide the Iranian government with funds to sustain its military campaign. Analysts also questioned whether two weeks of supply relief justified the risk of weakening the broader US sanctions architecture against Iran.