Treasury Secretary Scott Bessent disclosed Thursday that the Trump administration is considering lifting sanctions on approximately 140 million barrels of Iranian oil stranded on tankers at sea. The proposal is part of a broader effort to ease global energy market tensions stemming from Iran’s shutdown of the Strait of Hormuz.
The Hormuz closure has created a major supply gap in global oil markets, with estimates suggesting the daily shortfall stands between 10 and 14 million barrels. Crude prices have responded with a sustained surge above $100 per barrel, a level that has been maintained for roughly two weeks, raising alarm across oil-importing countries and international financial institutions.
Bessent said the stranded Iranian oil — originally bound for China — could serve as an emergency supply bridge if sanctions are temporarily lifted. He estimated the volume would provide global markets with relief for approximately 10 to 14 days, sufficient time for US diplomatic and military efforts to gain traction in resolving the Hormuz standoff.
The Treasury previously used a similar waiver for Russian oil, which successfully directed about 130 million barrels into global markets. Additional relief is also planned through a unilateral US draw from the Strategic Petroleum Reserve, supplementing the 400 million barrels jointly released by G7 nations the previous week.
Energy and geopolitics experts were critical of the proposal. They argued that allowing Iran to sell its oil, regardless of the circumstances, would generate funds for the Iranian government that could be used to prolong its military campaign and support allied militant groups. Analysts from compliance and policy institutions called the measure self-defeating, warning that its long-term consequences could outweigh the short-term market benefit.