Treasury Secretary Scott Bessent disclosed Thursday that Washington is weighing a plan to temporarily lift sanctions on Iranian crude oil floating on tankers in international waters, as part of its emergency response to the oil supply crisis caused by Iran’s closure of the Strait of Hormuz. The measure, if enacted, would represent one of the most significant short-term shifts in US Iran sanctions policy in years.
The Hormuz closure has created a daily oil supply deficit of between 10 and 14 million barrels, pushing global crude prices above $100 per barrel for close to two weeks. The sustained disruption has generated economic alarm in oil-importing countries and has placed intense pressure on the administration to find fast and effective supply-side solutions.
Bessent confirmed that approximately 140 million barrels of Iranian crude are currently on tankers in international waters, oil originally on course for Chinese ports. A targeted temporary sanctions waiver could redirect this supply to global buyers, providing roughly two weeks of price support while the US campaign to force Iran to reopen the strait continues.
The Treasury’s approach is modeled on a successful earlier waiver for Russian oil stranded at sea, which 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 planned, with the administration maintaining its opposition to financial energy market intervention.
Policy and compliance experts were broadly critical. They warned that any oil revenue reaching Tehran would provide the Iranian government with financial resources to sustain military operations and fund proxy activities across the Middle East. Several analysts described the plan as a policy contradiction that creates a short-term economic benefit at the cost of a meaningful and lasting strategic advantage for an adversary.