With the global energy crisis deepening and oil prices remaining above $100 per barrel, Treasury Secretary Scott Bessent revealed Thursday that the US is actively pursuing the option of temporarily lifting sanctions on Iranian crude oil stranded on tankers in international waters. Bessent described the measure as a critical component of the administration’s emergency supply strategy.
The Strait of Hormuz blockade has been the central cause of the current energy crisis, removing an estimated 10 to 14 million barrels of daily oil supply from global markets. The sustained disruption has created economic challenges for oil-importing nations and has pushed energy costs higher across multiple sectors of the global economy.
Bessent confirmed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally destined for Chinese ports. A temporary sanctions waiver could redirect this oil to global buyers, he explained, providing roughly two weeks of supply relief during the ongoing US campaign against the Hormuz blockade.
The Treasury’s plan is modeled on a previous waiver for Russian oil that added approximately 130 million barrels to global supply. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also being planned, with the administration ruling out any engagement in financial oil market instruments.
Policy analysts and compliance experts expressed significant reservations. They warned that Iranian oil revenues, however narrowly the waiver is designed, would ultimately benefit the Tehran government, providing resources for military activities and proxy support. Critics described the plan as a measure that solves the immediate market problem while creating a more complex set of strategic problems for the longer term.