Treasury Secretary Scott Bessent announced Thursday that the United States is developing a plan to redirect Iranian crude oil currently stranded on tankers to global buyers by temporarily lifting existing sanctions. The plan is part of Washington’s broader effort to address a global oil price crisis caused by Iran’s deliberate closure of the Strait of Hormuz.
The Hormuz closure has removed an estimated 10 to 14 million barrels of oil per day from global supply for close to two weeks, driving crude prices above $100 per barrel. The sustained disruption has created significant economic challenges for oil-importing nations and has put intense pressure on the administration to identify supply-side solutions quickly.
Bessent disclosed that approximately 140 million barrels of Iranian crude are currently stranded on tankers in international waters, oil that had been heading toward Chinese ports. A targeted temporary waiver would allow this supply to enter global markets, he said, providing roughly two weeks of price relief during the US campaign against the Hormuz blockade.
The Treasury’s approach draws on a previous waiver for Russian oil that contributed approximately 130 million barrels to global supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also being prepared, with the administration ruling out any engagement in financial oil market instruments.
Experts in sanctions and geopolitical strategy raised serious concerns. They warned that enabling any Iranian oil revenues, regardless of the waiver’s narrow scope, would provide financial resources to the Tehran government that could fund military activities and regional proxy support. Critics described the plan as strategically contradictory, simultaneously applying and relaxing economic pressure on an adversary during a moment of acute conflict.
