Declaring that dramatic action is necessary to tame soaring energy costs, Treasury Secretary Scott Bessent revealed Thursday that the United States may temporarily waive sanctions on Iranian crude oil currently stranded on tankers in international waters. The measure is intended to inject fresh supply into global oil markets reeling from Iran’s Strait of Hormuz closure.
The Hormuz closure has removed an estimated 10 to 14 million barrels per day from global oil supply for nearly two consecutive weeks, pushing crude prices above $100 per barrel. The price surge has created inflation risks, strained government budgets, and elevated costs for businesses and consumers across the global economy.
Bessent said approximately 140 million barrels of Iranian oil are stranded on tankers that had been making their way to Chinese ports. He argued that redirecting this oil to global markets through a targeted sanctions waiver would buy approximately 10 to 14 days of price stability while US military and diplomatic pressure on Iran continues.
The Treasury has set a precedent for this type of intervention, having previously issued a waiver for Russian oil that added around 130 million barrels to world supply. Bessent also confirmed plans for a unilateral US release from the Strategic Petroleum Reserve, beyond the G7’s 400 million barrel joint commitment, while definitively ruling out involvement in financial oil market trading.
Policy experts and sanctions specialists reacted with considerable skepticism. They argued that enabling Iran to benefit financially from oil sales — regardless of the circumstances — would ultimately strengthen the regime and provide it with resources to sustain military operations and fund proxy forces throughout the Middle East. Critics described the plan as a contradiction in terms, warning that it simultaneously weakens and uses the US sanctions toolkit.