Addressing financial media Thursday, Treasury Secretary Scott Bessent confirmed that the United States is actively considering removing sanctions from Iranian oil currently stranded aboard tankers in global waters. The move, if enacted, would represent a significant short-term shift in US sanctions policy in response to the oil price crisis triggered by Iran’s Strait of Hormuz closure.
The Strait of Hormuz closure has removed a substantial chunk of global daily oil supply, and prices have remained above $100 per barrel throughout the disruption. Bessent acknowledged the severity of the supply shortage and outlined several tools the administration plans to deploy to bring prices back under control.
Central to the plan is the potential unlocking of approximately 140 million barrels of Iranian crude floating on tankers that had been destined for China. Bessent framed this as a supply bridge, sufficient to cover an estimated 10 to 14 days of the deficit caused by the Hormuz closure, while broader US efforts to resolve the situation continue.
Beyond Iranian oil, Bessent confirmed that the US will carry out a unilateral release from the Strategic Petroleum Reserve in addition to the coordinated 400 million barrel G7 release. He was unambiguous in stating that the Treasury would not pursue intervention in financial oil markets, focusing instead on increasing physical oil availability.
Critics in the policy and compliance sectors raised significant concerns. Experts warned that allowing Iran’s oil to be sold — regardless of how the waiver is structured — would result in financial flows to the Iranian government, potentially enabling it to sustain and expand military operations. The consensus among observers was that the measure offers limited and temporary market relief while carrying significant geopolitical risks.