Treasury Secretary Scott Bessent offered an unusual policy proposal Thursday: using Iranian oil stranded on tankers to shield global markets from the price spike caused by Iran’s own blockade of the Strait of Hormuz. By temporarily lifting sanctions on approximately 140 million barrels of Iranian crude, Bessent argued, the US could inject urgently needed supply into the global market.
Iran’s Hormuz closure has created an estimated daily oil supply shortfall of 10 to 14 million barrels, a deficit that has driven crude prices above $100 per barrel for close to two weeks. The disruption has raised alarm in financial markets, government budget offices, and among consumers facing rising energy costs around the world.
Bessent said the 140 million barrels of Iranian crude now stranded on tankers — originally bound for China — represent a potential emergency supply that could be unlocked through a targeted sanctions waiver. He estimated this supply would cover approximately two weeks of the market’s needs during the current crisis, buying time for the US campaign to take effect.
The administration has used similar waivers before, most recently for Russian oil that contributed around 130 million barrels to global supply. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also planned, with Bessent emphasizing the administration will not engage in financial market interventions.
Sanctions and security experts challenged the wisdom of the plan. They pointed out that selling Iranian oil — even under a time-limited waiver — would generate substantial revenues for the Iranian regime, which could be allocated to military operations and support for regional militant groups. Critics described the plan as fundamentally at odds with the US goal of applying maximum economic pressure on Tehran.
