Treasury Secretary Scott Bessent proposed a striking strategic twist Thursday: using Iranian oil stranded on tankers to counteract the economic damage Iran is trying to inflict by closing the Strait of Hormuz. Bessent announced the US may temporarily lift sanctions on approximately 140 million barrels of Iranian crude in international waters, redirecting them to global markets to help stabilize prices above $100 per barrel.
The Strait of Hormuz closure has been a severe blow to global oil supply, removing an estimated 10 to 14 million barrels per day from the market. The resulting price surge has persisted for nearly two weeks, and governments worldwide have been scrambling to find solutions that can provide meaningful and timely relief.
Bessent said the stranded Iranian crude, oil originally bound for China, could serve as a short-term supply bridge for global buyers. A temporary sanctions waiver, he explained, would allow this oil to flow to global markets for approximately two weeks, during which the US campaign against the Hormuz blockade would continue.
Earlier precedent includes a Treasury waiver for Russian oil that added approximately 130 million barrels to global supply. The US is also planning a unilateral Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment, with Bessent ruling out any engagement in financial oil market instruments.
Experts were sharply divided on the wisdom of the approach. While some acknowledged the tactical appeal of using Iran’s own oil to undercut its strategy, sanctions specialists and national security analysts argued that Iran would profit from the oil sales, generating revenue for military operations and proxy activities. Critics said the proposal creates a contradiction at the heart of US Iran policy, simultaneously pressuring and financially supporting the regime.