Treasury Secretary Scott Bessent revealed Thursday that the Trump administration is exploring a plan to temporarily lift sanctions on Iranian crude oil stranded on tankers in the open sea. The proposal is the latest in a series of emergency measures being considered by Washington as it works to bring down oil prices that have exceeded $100 per barrel since Iran’s Strait of Hormuz closure.
The Strait of Hormuz blockade has removed an estimated 10 to 14 million barrels of oil per day from global supply for nearly two weeks, creating one of the sharpest oil price spikes in recent memory. The disruption has strained economies worldwide and has made energy policy one of the most pressing issues for the administration and its international partners.
Bessent said approximately 140 million barrels of Iranian crude are stranded on tankers that had been destined for Chinese ports. He described a potential temporary sanctions waiver as a practical tool to redirect this oil to global markets, providing roughly two weeks of supply relief while US efforts to resolve the Hormuz crisis continue.
The Treasury’s plan draws on a proven model, including a previous waiver for Russian oil that added approximately 130 million barrels to global supply. Additional supply from a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also being prepared, while the administration rules out any action in financial oil markets.
Policy and compliance experts raised significant concerns about the plan. They warned that allowing Iran to profit from oil sales, even under a limited waiver, would generate revenue for the Iranian regime that could be directed toward military activities and support for regional proxy forces. Analysts described the proposal as offering short-term market relief at a potentially steep long-term strategic cost.