Iranian oil stranded on tankers has become central to the Trump administration’s emergency energy market strategy, Treasury Secretary Scott Bessent revealed Thursday. Bessent announced the US is weighing a temporary lifting of sanctions on approximately 140 million barrels of Iranian crude in international waters, as part of a broader effort to stabilize oil prices above $100 per barrel caused by Iran’s Strait of Hormuz closure.
The Hormuz blockade has disrupted global oil flows by an estimated 10 to 14 million barrels per day, one of the most acute and sudden supply shocks the global market has experienced in years. The resulting price surge has generated concern among governments, international financial institutions, and energy market observers worldwide.
Bessent described the stranded Iranian crude — oil originally destined for Chinese ports — as a ready supply buffer that could be unlocked through a targeted temporary waiver. He estimated this supply would provide approximately two weeks of market relief while the US continues its broader campaign to force Iran to reopen the strait.
The plan draws on a precedent set by a previous Treasury waiver for Russian oil, which contributed around 130 million barrels to global supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also planned, with the administration firmly opposed to intervening in financial oil market instruments.
Experts raised significant concerns about the proposal’s strategic implications. Sanctions specialists and national security analysts warned that allowing Iran to benefit financially from any oil sales would provide the regime with revenue to sustain military operations and support proxy forces. Critics described the proposal as creating a fundamental contradiction in US Iran policy, simultaneously pressuring and financially enabling the regime during a moment of open conflict.