The Trump administration is considering using Iranian oil stranded on tankers as an emergency supply buffer, Treasury Secretary Scott Bessent disclosed Thursday. Bessent said the potential temporary lifting of sanctions on approximately 140 million barrels of Iranian crude in international waters is one of several measures being considered to address oil prices that have exceeded $100 per barrel since Iran’s closure of the Strait of Hormuz.
Iran’s decision to close the Strait of Hormuz has been a defining event for global energy markets, removing an estimated 10 to 14 million barrels per day from circulation for close to two weeks. The sustained price surge has generated considerable economic concern, with particular worry about the impact on oil-dependent developing economies and the broader risk of global inflation.
Bessent confirmed that approximately 140 million barrels of Iranian crude are on tankers in international waters, oil that had been bound for Chinese buyers. A targeted temporary waiver would allow this oil to reach global markets, providing an estimated two-week supply cushion as the US continues its efforts to reopen the strait.
The approach draws on a previous Treasury waiver for Russian oil, which added approximately 130 million barrels to world supply. Bessent also confirmed an additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is planned, while explicitly ruling out Treasury involvement in financial oil market trading.
Experts in sanctions compliance and geopolitical strategy raised immediate concerns. They warned that any oil revenue flowing to Tehran, regardless of how narrowly the waiver is scoped, would provide financial support for the Iranian government’s military and proxy activities. Critics called the plan a short-term market fix with potentially lasting strategic consequences, warning it could significantly bolster an adversary’s capacity to continue the conflict.