Treasury Secretary Scott Bessent put forward a bold and controversial proposal Thursday: temporarily removing sanctions on Iranian oil stranded on tankers in international waters to ease a global oil supply crisis. While Bessent argued the measure would bring prices down from levels above $100 per barrel, critics say the plan carries significant strategic risks.
Iran’s closure of the Strait of Hormuz has removed between 10 and 14 million barrels per day from global oil markets, a disruption that has now persisted for nearly two weeks. The resulting price surge has been the defining economic story of recent days, affecting energy costs for consumers, businesses, and governments around the world.
Bessent said approximately 140 million barrels of Iranian crude are currently stranded on tankers that had been bound for China. The plan under consideration would temporarily lift sanctions on this oil, redirecting it to global buyers and providing an estimated 10 to 14 days of supply relief during the ongoing US campaign against Iran’s Hormuz blockade.
The Treasury has previously used this approach for Russian oil, issuing a limited waiver that added approximately 130 million barrels to world supply. Bessent confirmed additional supply would also come from a unilateral US Strategic Petroleum Reserve release, beyond the G7’s coordinated 400 million barrel drawdown, with no plans to intervene in financial oil market trading.
The reaction from experts was divided. While some acknowledged the tactical logic of the proposal, sanctions specialists and national security analysts warned that any revenue flowing to Iran from these sales would strengthen the regime financially, enabling it to sustain military operations and support regional proxy groups. Critics described the plan as a strategic gamble, trading short-term price relief for long-term geopolitical risk.