Treasury Secretary Scott Bessent revealed Thursday that the administration is considering temporarily lifting sanctions on Iranian crude oil stranded on tankers in international waters, as global allies watch Washington’s response to the oil price crisis caused by Iran’s Strait of Hormuz blockade. Bessent said the potential release of approximately 140 million barrels of Iranian crude is part of the emergency supply strategy to bring down prices above $100 per barrel.
Global allies have been closely monitoring Washington’s crisis management, with many oil-importing nations among the most severely affected by Iran’s Hormuz blockade. The blockade has removed between 10 and 14 million barrels of daily supply from global markets for close to two weeks, creating economic pressure that has spread well beyond US borders to allied economies worldwide.
Bessent confirmed the Iranian crude on tankers, originally heading toward Chinese buyers, as a potential supply source for the allied response effort. A targeted temporary waiver could redirect approximately 140 million barrels to global markets, providing roughly two weeks of price support while the US campaign against the Hormuz blockade continues to develop alongside allied diplomatic efforts.
The Treasury has previously coordinated comparable supply measures with allies, including a waiver for Russian oil that added approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s coordinated 400 million barrel commitment is also being planned, while the administration has ruled out any engagement in financial oil market instruments.
Allied governments and independent policy experts raised questions about the Iranian crude proposal’s strategic implications. Compliance professionals warned that enabling Iranian oil revenues would provide the Tehran regime with funds for military activities and proxy support, consequences that affect allied security interests as much as American ones. Critics urged the administration to ensure that allied perspectives on the long-term strategic costs of the waiver are fully incorporated before a final decision is made.