Treasury Secretary Scott Bessent outlined a comprehensive oil relief plan Thursday that includes the potential temporary lifting of sanctions on Iranian crude oil stranded on tankers in international waters. Bessent said the multi-pronged plan is designed to address the severe global oil supply shortfall caused by Iran’s closure of the Strait of Hormuz, which has driven prices above $100 per barrel.
The Hormuz closure has created a daily oil supply gap of between 10 and 14 million barrels, an acute disruption that has persisted for close to two weeks. The sustained price surge has placed significant economic pressure on oil-importing countries and has prompted emergency discussions among governments, international bodies, and energy market participants worldwide.
Bessent confirmed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally destined for Chinese ports. A targeted temporary sanctions waiver could unlock this supply for global sale, he explained, providing roughly two weeks of market relief during the US campaign to resolve the Hormuz standoff.
The plan draws on a precedent set by a previous Treasury waiver for Russian oil, which added approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also in development, with Bessent confirming the administration’s opposition to any financial oil market intervention.
Policy analysts and compliance experts expressed concern about the strategic implications. They argued that enabling Iranian oil revenues, even within the narrowest possible waiver framework, would provide the Tehran government with financial resources that could support military operations and regional proxy activities. Critics warned that the plan’s brief and limited price benefit does not justify the risk of financially strengthening an adversary during an active conflict.