Treasury Secretary Scott Bessent generated considerable discussion among energy economists and national security experts Thursday after announcing the US may temporarily remove sanctions on Iranian crude oil sitting on tankers in international waters. He said the measure is designed to address the severe price spike caused by Iran’s Strait of Hormuz closure.
The Hormuz closure has lasted for close to two weeks, removing between 10 and 14 million barrels per day from global oil markets and pushing crude prices above $100 per barrel. The sustained disruption has placed oil-importing nations under significant economic strain and has prompted emergency discussions among world leaders and energy bodies.
Bessent described approximately 140 million barrels of Iranian crude on tankers originally heading to China as a ready supply buffer. A temporary sanctions waiver could unlock this oil for global sale, he said, providing an estimated two-week supply cushion while the US campaign to pressure Iran continues.
The Treasury has previously issued a similar waiver for Russian oil, which added approximately 130 million barrels to world supply. Bessent also confirmed a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is planned, while firmly ruling out involvement in financial oil market instruments.
Independent experts and policy analysts were sharply critical. They warned that allowing Iran to benefit financially from oil sales — even under a temporary and narrow waiver — would provide the Iranian government with resources that could support military activities and fund regional proxy forces. Critics argued that the plan offers only modest and short-lived price relief at a potentially significant and lasting strategic cost.