Treasury Secretary Scott Bessent sparked significant debate among energy and foreign policy experts Thursday after revealing the US may lift sanctions on Iranian oil stranded on tankers as part of a plan to bring down soaring crude prices. The announcement marked a notable potential shift in the US approach to its Iran sanctions regime.
Oil prices have remained above $100 per barrel for nearly two weeks following Iran’s closure of the Strait of Hormuz, a move that has effectively cut off between 10 and 14 million barrels per day from global markets. The prolonged disruption has prompted growing calls for emergency supply measures from governments, businesses, and international organizations.
Bessent described approximately 140 million barrels of Iranian crude on tankers as a potential short-term supply solution. This oil, originally destined for China, could be redirected to global buyers through a narrowly defined sanctions waiver, he explained, providing an estimated two-week bridge as the US campaign against Iran’s blockade continues.
Earlier precedent exists in the form of a similar Treasury waiver for Russian oil, which contributed approximately 130 million barrels to global supply. The administration is also planning an independent Strategic Petroleum Reserve release on top of the 400 million barrel G7 commitment, while confirming it will not seek to intervene in financial energy markets.
Experts in sanctions policy, national security, and energy economics expressed strong reservations. They warned that any oil revenue flowing to Tehran would inevitably support the Iranian regime’s military and political objectives, effectively subsidizing an adversary. Several analysts described the proposal as a short-sighted tactical move with potentially serious long-term strategic consequences.