Treasury Secretary Scott Bessent revealed Thursday that the US is considering a bold policy move: temporarily lifting sanctions on Iranian crude oil floating on tankers in international waters to address the global oil price surge triggered by Iran’s closure of the Strait of Hormuz. The announcement has set off a robust debate among energy experts, sanctions specialists, and national security analysts.
Oil prices have held above $100 per barrel for approximately two weeks as Iran’s Hormuz blockade removes an estimated 10 to 14 million barrels per day from global supply. The disruption has been one of the most acute supply shocks in recent energy market history, raising urgent questions about how quickly the global community can restore price stability.
Bessent disclosed that roughly 140 million barrels of Iranian crude are currently stranded on tankers that had been heading to Chinese ports. He argued that a temporary sanctions waiver could redirect this oil to global buyers and provide approximately two weeks of supply relief as the US campaign against the Hormuz blockade continues to develop.
The Treasury has used similar waivers before, including for Russian oil that added approximately 130 million barrels to global supply. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also being prepared, with the administration committed to addressing the crisis through physical oil supply rather than financial market interventions.
Independent experts were cautious and, in many cases, strongly critical. Compliance professionals warned that allowing Iran to benefit financially from oil sales, even under a strictly limited temporary waiver, would provide the Iranian government with resources to fund military activities and regional proxy forces. Analysts said the proposal exemplifies the difficult tradeoffs of crisis energy policy — delivering short-term market relief while potentially creating lasting strategic complications for US Iran policy.