Treasury Secretary Scott Bessent disclosed Thursday that the United States may temporarily suspend sanctions on Iranian crude oil stranded on tankers in international waters, using the supply to help fill the massive gap in global oil markets created by Iran’s Strait of Hormuz closure. The announcement has generated significant debate among energy economists, compliance experts, and geopolitical analysts.
Iran’s Hormuz blockade has removed an estimated 10 to 14 million barrels of oil per day from global supply, a disruption that has now persisted for close to two weeks. Oil prices have climbed well above $100 per barrel and remained elevated, placing economic pressure on oil-importing nations and threatening the pace of global economic recovery.
Bessent said approximately 140 million barrels of Iranian crude are currently stranded on tankers in international waters, oil that had been heading for Chinese ports. A temporary sanctions waiver could redirect this supply to global buyers, he explained, providing an estimated two-week bridge of supply while the US works to resolve the Hormuz crisis through diplomatic and military channels.
Precedent for this approach was set by a Treasury waiver for Russian oil, which contributed approximately 130 million barrels to world supply. Additional relief from a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint drawdown is also being prepared, alongside a firm stance against engaging in financial energy market instruments.
Independent experts were largely skeptical. Sanctions compliance professionals and national security analysts warned that any oil revenue flowing to Tehran would provide the Iranian government with resources for military spending and proxy support. Several critics called the proposal deeply contradictory, noting that it would simultaneously aim to weaken and financially benefit an adversary at a moment of acute strategic conflict.