Treasury Secretary Scott Bessent announced Thursday that the United States is seriously considering allowing the sale of Iranian crude oil currently stranded on tankers, in what would represent a notable tactical shift in US energy and foreign policy. Bessent said the measure would help address a global oil supply shortfall caused by Iran’s blockade of the Strait of Hormuz, which has kept crude prices above $100 per barrel for close to two weeks.
The Hormuz blockade has had a severe and sustained impact on global oil markets. By removing between 10 and 14 million barrels of daily supply, Iran has created a price shock that has been felt by oil consumers, importers, and businesses across the global economy.
Bessent confirmed that approximately 140 million barrels of Iranian crude are currently aboard tankers that had been heading to Chinese buyers. He argued that a temporary sanctions waiver could redirect this oil to global markets, providing roughly two weeks of supply support during the critical phase of the US response to the Hormuz crisis.
Precedent for this approach exists in a previous Treasury waiver for Russian oil, which added approximately 130 million barrels to world supply. Bessent also confirmed that an additional unilateral US Strategic Petroleum Reserve release is being planned beyond the G7’s 400 million barrel coordinated commitment, while the administration maintains its opposition to financial market intervention.
Experts in national security and sanctions policy were vocal in their concerns. They warned that any financial benefit to Iran from oil sales — regardless of the waiver’s scope — would provide the Tehran regime with resources to sustain military activities and fund regional proxy forces. Analysts described the proposal as a strategically troubling measure that prioritizes a brief and limited price benefit over the longer-term goal of economically isolating Iran.
