Treasury Secretary Scott Bessent disclosed Thursday that the Trump administration is weighing a limited and temporary lifting of sanctions on Iranian crude oil stranded on tankers at sea. The proposed measure is intended to add emergency supply to global oil markets that have been severely disrupted by Iran’s closure of the Strait of Hormuz.
Oil prices have remained above $100 per barrel for approximately two weeks since Iran blocked the Strait of Hormuz, a move that has removed between 10 and 14 million barrels per day from global supply. The sustained price increase has raised concerns about energy affordability, inflation, and economic stability in multiple regions worldwide.
Bessent identified approximately 140 million barrels of Iranian crude on tankers in international waters — oil originally bound for China — as a potential short-term supply source. A targeted temporary waiver, he said, could unlock this oil for global sale, providing roughly two weeks of supply relief while the US continues its efforts to resolve the Hormuz situation.
The Treasury’s approach builds on a similar waiver issued for Russian oil, which added approximately 130 million barrels to global markets. Additional relief from a unilateral US Strategic Petroleum Reserve release beyond the G7’s coordinated 400 million barrel commitment is also in the works, with the administration firmly opposed to any intervention in financial oil markets.
Experts and analysts raised important concerns. Sanctions specialists argued that any oil revenue flowing to Tehran, regardless of the waiver’s narrow scope, would strengthen the Iranian regime and could support military and proxy activities in the region. Critics broadly described the plan as a measure that offers limited and short-lived market relief at a potentially significant cost to the long-term coherence of US Iran policy.