As global energy markets continue to reel from the impact of Iran’s Strait of Hormuz closure, Treasury Secretary Scott Bessent revealed Thursday that the US is readying a potential Iranian oil release through a temporary lifting of sanctions on crude stranded on tankers in international waters. Bessent said the measure is part of the administration’s comprehensive emergency oil supply response.
The Hormuz closure has persisted for close to two weeks, removing between 10 and 14 million barrels of daily oil supply from the global market and driving crude prices above $100 per barrel. The disruption has created significant economic pressure on oil-importing countries and has prompted emergency supply discussions among governments and energy market participants worldwide.
Bessent confirmed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally heading toward Chinese buyers. A targeted temporary waiver could redirect this oil to global markets, he said, providing an estimated two-week supply cushion while the US continues its campaign to force Iran to reopen the strait.
The plan mirrors a previous Treasury waiver for Russian oil that contributed approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also in development, with the administration confirming its opposition to financial energy market intervention.
Analysts and compliance experts raised significant concerns about the strategic implications. They warned that enabling any Iranian oil revenues, regardless of the waiver’s structure, would provide the Tehran government with financial resources to sustain military operations and fund regional proxy activities. Critics described the plan as a supply-side measure with serious geopolitical side effects, warning that its brief market benefit may generate lasting strategic complications.