A controversial plan to temporarily lift US sanctions on Iranian crude oil stranded on tankers is under serious consideration, Treasury Secretary Scott Bessent revealed Thursday. Bessent said the measure is part of the administration’s strategy to stabilize global energy costs that have soared above $100 per barrel since Iran’s closure of the Strait of Hormuz.
Iran’s Hormuz blockade has been the primary driver of the current oil price surge, removing an estimated 10 to 14 million barrels per day from global supply for close to two weeks. The resulting price increase has created significant economic strain across multiple sectors and regions, raising the stakes of the administration’s energy policy response.
Bessent disclosed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally destined for Chinese ports. A temporary waiver could redirect this supply to global buyers, providing an estimated two-week bridge of price support while the US continues its campaign to restore transit through the Strait of Hormuz.
The plan draws on a precedent established by a Treasury waiver for Russian oil that contributed approximately 130 million barrels to global supply. Bessent also confirmed that a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is being planned, while the administration maintains its stance against engagement in financial oil market instruments.
Independent analysts raised important warnings. Compliance professionals and policy experts argued that allowing Iran to sell its oil, even under a narrow and temporary waiver, would generate revenue for the Tehran regime that could sustain military activities and fund regional proxy forces. Critics described the plan as a measure that achieves brief price relief at the cost of a significant strategic concession to an active adversary.
