Treasury Secretary Scott Bessent pivoted on Iranian oil sanctions Thursday, revealing the administration is considering a temporary lifting of restrictions on Iranian crude stranded on tankers as part of its response to a global oil market emergency. Bessent said the measure, which would involve approximately 140 million barrels of Iranian crude in international waters, is designed to bring down prices above $100 per barrel caused by Iran’s Hormuz blockade.
The Hormuz closure has removed between 10 and 14 million barrels of daily oil supply from global markets for close to two weeks, creating an acute price crisis with wide economic consequences. The sustained disruption has placed the administration under intense pressure to find supply solutions capable of providing meaningful relief at scale.
Bessent said the stranded Iranian crude, originally on its way to Chinese ports, represents a potential short-term supply buffer. A targeted temporary sanctions waiver could unlock this oil for global sale, he argued, providing roughly two weeks of market relief during the ongoing US campaign to force Iran to reopen the strait.
The Treasury has used a comparable mechanism for Russian oil, adding approximately 130 million barrels to world supply, providing a working model for the proposed Iranian waiver. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also being developed, while the administration maintains its opposition to financial market intervention.
Experts and compliance professionals questioned the wisdom of the pivot. They warned that enabling Iranian oil revenues, even within the tightest possible waiver framework, would provide the Tehran regime with financial resources for military activities and proxy support. Critics described the sanctions pivot as a significant strategic concession driven by market necessity, warning that its long-term consequences may prove more costly than the brief price relief achieved.