Treasury Secretary Scott Bessent disclosed Thursday that the US is seriously considering lifting sanctions on Iranian crude oil currently stranded aboard tankers in international waters. The announcement represents one of the most significant potential shifts in US Iran sanctions policy in years and has sparked intense debate among energy, foreign policy, and compliance experts.
Iran’s closure of the Strait of Hormuz has created a substantial daily oil supply deficit, estimated at between 10 and 14 million barrels. Crude prices have remained above $100 per barrel throughout the disruption, now entering its third week, and the economic pressure on oil-importing nations has been significant.
Bessent identified approximately 140 million barrels of Iranian crude on tankers originally bound for China as a potential emergency supply source. A temporary sanctions waiver, he explained, could redirect this oil to global markets and provide approximately two weeks of supply relief while the US continues its efforts to resolve the Hormuz standoff.
The Treasury’s plan builds on a precedent set by a similar waiver for Russian oil, which contributed around 130 million barrels to global supply. The administration is also planning an independent US Strategic Petroleum Reserve release beyond the 400 million barrel G7 coordinated commitment, while explicitly ruling out intervention in financial oil markets.
Critics from the sanctions enforcement and international security communities raised serious concerns. They argued that any oil revenue flowing to the Iranian government — regardless of the waiver’s structure — would provide financial support for the regime’s military operations and regional proxy network. Multiple analysts characterized the proposal as a strategic miscalculation that prioritizes short-term price relief over long-term geopolitical coherence.