Treasury Secretary Scott Bessent made a striking disclosure Thursday, revealing that the US may soon allow the sale of Iranian crude oil sitting aboard tankers in international waters by temporarily lifting existing sanctions. Bessent described the measure as a tactical tool in Washington’s effort to combat oil prices that have been above $100 per barrel since Iran’s closure of the Strait of Hormuz.
Iran’s Hormuz blockade has been causing a significant disruption to global oil flows for nearly two weeks, removing an estimated 10 to 14 million barrels per day from the market. The resulting price spike has raised economic concerns worldwide, with oil-importing nations particularly affected by the surge in energy costs.
Bessent said approximately 140 million barrels of Iranian crude are currently on tankers that were heading to China. The administration is weighing a targeted sanctions waiver to allow this oil to enter global markets, providing what the Treasury Secretary estimated would be approximately two weeks of supply relief during a critical phase of the US campaign against the Hormuz closure.
This approach has precedent in a previous Treasury waiver for Russian oil that contributed around 130 million barrels to global supply. Additional supply from an expanded US Strategic Petroleum Reserve release, beyond the 400 million barrel G7 commitment, is also part of the plan, alongside a firm commitment against intervening in financial energy markets.
Analysts and sanctions experts expressed serious reservations about the approach. They warned that revenues from Iranian oil sales, even within a narrow waiver framework, would accrue to the Iranian government and could be used to sustain military activities and fund proxy forces across the Middle East. Several observers questioned whether the strategic cost of such a measure outweighs its relatively brief market benefit.