Treasury Secretary Scott Bessent made headlines Thursday when he revealed the US is actively considering lifting sanctions on Iranian crude oil currently stranded on tankers. The proposal, aimed at stabilizing global energy prices above $100 per barrel, represents one of the most consequential potential changes to US Iran policy in recent years.
Iran’s blockade of the Strait of Hormuz has created a massive daily oil supply deficit, with the global market short by an estimated 10 to 14 million barrels per day for close to two weeks. The disruption has forced emergency policy discussions in the US and among international partners, with prices showing little sign of returning to pre-crisis levels without meaningful supply intervention.
Bessent said roughly 140 million barrels of Iranian crude are sitting on tankers originally heading to Chinese ports. A temporary sanctions waiver could allow this oil to reach global buyers, providing what he estimated would be approximately two weeks of supply bridge as the US continues to pressure Iran to reopen the strait.
An earlier Treasury waiver for Russian oil added approximately 130 million barrels to global supply, providing a working model for the approach. Additional supply from a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also being prepared, while the administration rules out any engagement in financial oil futures markets.
Experts from sanctions and national security fields warned of the risks. They noted that any financial benefit Iran receives from oil sales — even under a limited waiver — would go to the Iranian government, potentially strengthening its capacity for military activities and proxy support across the Middle East. Critics described the plan as strategically contradictory and unlikely to provide lasting market relief.