Treasury Secretary Scott Bessent confirmed Thursday that Iranian crude oil stranded on tankers is under active consideration as a supply solution, as the Strait of Hormuz crisis intensifies and oil prices remain above $100 per barrel. Bessent said the administration is seriously weighing a temporary lifting of sanctions on approximately 140 million barrels of Iranian crude in international waters.
The intensifying Hormuz crisis has now been removing between 10 and 14 million barrels of daily supply from global markets for close to two weeks. The sustained price surge has created growing economic hardship and has pushed the administration to confirm that increasingly unconventional supply measures are under active consideration.
Bessent said the Iranian crude on tankers, originally destined for Chinese ports, is one of the most significant supply options under active review. A targeted temporary waiver could redirect this oil to global buyers, providing roughly two weeks of price support during the US campaign to force Iran to reopen the strait.
The Treasury has previously acted on comparable active considerations, including a waiver for Russian oil that contributed approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also in active development, while the administration has categorically ruled out financial market intervention.
Policy and compliance experts raised concerns about the active consideration confirmation. They warned that confirming Iranian crude is under active consideration signals to markets and adversaries that US Iran sanctions have a price threshold at which they will be suspended, potentially incentivizing future disruptions designed to exceed that threshold. Critics urged the administration to carefully evaluate not just the supply benefits of the measure but the precedent its active consideration — and potential deployment — sets for the broader US sanctions strategy.