Treasury Secretary Scott Bessent is testing the limits of US Iran sanctions strategy with a proposal to temporarily lift restrictions on Iranian crude oil stranded on tankers at sea. Bessent announced Thursday that the administration is considering the measure as part of its emergency response to oil prices above $100 per barrel caused by Iran’s Strait of Hormuz closure.
The Hormuz blockade has removed between 10 and 14 million barrels of daily oil supply from global markets for close to two weeks. The sustained price surge has raised alarm in governments and financial institutions worldwide and has put intense pressure on the administration to identify fast and effective supply solutions.
Bessent confirmed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil that had been on its way to Chinese buyers. A targeted temporary waiver could allow this oil to reach global markets, he said, providing roughly two weeks of supply relief during the ongoing US campaign against the Hormuz blockade.
The Treasury has previously used this kind of mechanism for Russian oil, which added approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also being prepared, while the administration has ruled out involvement in financial oil market trading.
Experts from the sanctions and national security communities questioned whether the plan is strategically sound. They argued that allowing Iranian oil to be sold, even under a strictly limited temporary waiver, would generate revenue for the Tehran government that could support military activities and proxy forces. Critics said the proposal creates a significant tension within US Iran policy, using a degree of sanctions relief as a tool against the very country the sanctions are designed to pressure.