US Treasury Secretary Scott Bessent revealed Thursday that the Trump administration may lift sanctions on Iranian crude oil stranded in tankers on the open sea, as part of an emergency plan to inject supply into oil markets disrupted by Iran’s closure of the Strait of Hormuz. The announcement represents one of the boldest energy policy proposals in recent years.
Iran’s Hormuz blockade has kept between 10 and 14 million barrels per day off the global market for nearly two weeks, sending crude prices above $100 per barrel and raising serious economic concerns around the world. The sustained price increase has forced governments to seek creative and swift solutions to prevent broader economic damage.
Bessent said approximately 140 million barrels of Iranian crude are currently stranded on tankers that had been on course for Chinese ports. By temporarily lifting sanctions, the US could redirect this oil to global buyers and provide an estimated 10 to 14 days of supply relief during a critical phase of its response to the Hormuz crisis.
The plan draws on precedent set by a similar Treasury waiver for Russian oil, which added around 130 million barrels to world supply earlier in the crisis. Additional relief from a unilateral US Strategic Petroleum Reserve release, beyond the G7’s 400 million barrel joint commitment, is also in the works, while Bessent ruled out any financial market intervention.
Policy and compliance experts reacted with caution. They warned that any oil sale revenue flowing to Tehran would be available to fund the Iranian government’s military operations and regional proxy activities, potentially prolonging rather than shortening the conflict. Critics said the proposal may achieve its immediate pricing goal at the cost of longer-term strategic disadvantage.
