Treasury Secretary Scott Bessent outlined a multi-tool approach to the global oil price crisis Thursday, with Iranian crude oil stranded on tankers emerging as a key element. Bessent said the administration is considering temporarily lifting sanctions on approximately 140 million barrels of Iranian crude in international waters, alongside additional releases from the US Strategic Petroleum Reserve, to address oil prices above $100 per barrel caused by Iran’s Hormuz blockade.
The Hormuz closure has created a daily supply gap of between 10 and 14 million barrels, a disruption that has persisted for close to two weeks and has had significant economic consequences worldwide. The administration has responded with a series of escalating supply measures, with Bessent’s Thursday announcement representing the latest and most ambitious element.
Bessent confirmed the stranded Iranian crude, originally destined for Chinese ports, could be released to global markets through a targeted temporary sanctions waiver. He estimated this oil would provide roughly two weeks of price relief during the US campaign to force Iran to reopen the Strait of Hormuz.
The multi-tool approach also includes a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment, alongside a firm policy against engaging in financial oil market instruments. The Treasury has previously used a comparable waiver for Russian oil, adding approximately 130 million barrels to world supply.
Experts raised concerns about the Iranian oil component of the plan. Sanctions specialists and national security analysts warned that any Iranian oil revenues, even within a narrowly defined waiver, would benefit the Tehran regime and could fund military and proxy activities. Critics said while the multi-tool approach reflects appropriate ambition, including Iranian oil in the toolkit creates strategic risks that could complicate the US campaign against the Hormuz blockade in the longer term.