Treasury Secretary Scott Bessent made a potentially historic policy announcement Thursday, revealing that the United States may temporarily lift sanctions on Iranian crude oil stranded on tankers in international waters. The move, aimed at stabilizing global energy markets roiled by Iran’s Strait of Hormuz blockade, could represent one of the most significant short-term adjustments to US Iran policy in recent history.
The Hormuz blockade has removed an estimated 10 to 14 million barrels of daily oil supply from global markets for nearly two weeks. Crude prices have exceeded $100 per barrel and remained elevated throughout the disruption, raising significant concerns about energy affordability, inflation, and economic stability across the world.
Bessent identified approximately 140 million barrels of Iranian crude on tankers in international waters — oil originally destined for China — as an untapped emergency supply source. By issuing a targeted temporary waiver, he said, the Treasury could redirect this oil to global markets and provide roughly two weeks of price relief during the ongoing US campaign against the Hormuz blockade.
Earlier precedent was established when the Treasury issued a comparable waiver for Russian oil, contributing approximately 130 million barrels to world supply. Bessent confirmed a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also in preparation, with the administration maintaining its policy against financial energy market intervention.
Analysts and compliance experts responded with caution and concern. They argued that any financial benefit flowing to the Iranian regime from oil sales, regardless of the waiver’s narrow scope, would provide resources for military operations and proxy support. Critics warned that the measure trades a brief and limited price benefit for a potentially significant and enduring strategic concession to an active adversary.