Treasury Secretary Scott Bessent revealed a plan Thursday to effectively recycle Iranian oil — stranded on tankers by the current crisis — back into global markets as a way of counteracting Iran’s energy price strategy. Bessent announced the US is considering temporarily lifting sanctions on approximately 140 million barrels of Iranian crude in international waters to help stabilize global oil prices above $100 per barrel.
Iran’s closure of the Strait of Hormuz has removed between 10 and 14 million barrels per day from global oil supply, a disruption that has persisted for close to two weeks. The resulting price surge has affected every segment of the global economy, from airline fuel costs to consumer energy bills, and has placed urgent pressure on governments worldwide to respond.
Bessent said the stranded Iranian crude, originally on its way to Chinese buyers, represents an available supply source that could be redirected through a targeted temporary waiver. He estimated this supply would provide roughly two weeks of market relief, during which the US campaign to force Iran to reopen the strait would continue.
The Treasury’s precedent for this kind of action includes a waiver for Russian oil that added approximately 130 million barrels to world supply. Bessent confirmed an additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also in development, while maintaining the administration’s position against financial market intervention.
Experts challenged the plan on strategic grounds. Sanctions specialists and national security analysts warned that any oil revenue reaching Tehran would benefit the Iranian regime, potentially supporting military operations and proxy forces. Critics described the proposal as a plan that uses Iran’s own resources against its economic strategy while simultaneously providing it with funds to sustain the very conflict that motivated the strategy.