Treasury Secretary Scott Bessent confirmed Thursday that the Trump administration is preparing a package of emergency oil supply measures, including a potential temporary lifting of sanctions on Iranian crude oil stranded on tankers in international waters. The package is designed to address the oil price crisis that has persisted since Iran closed the Strait of Hormuz.
Oil prices have remained above $100 per barrel for nearly two weeks as Iran’s Hormuz blockade has removed an estimated 10 to 14 million barrels of oil per day from global markets. The disruption has created significant economic pressure on oil-importing nations, with inflation and energy cost concerns mounting across the world.
Bessent disclosed that approximately 140 million barrels of Iranian crude are currently on tankers in international waters, oil that had been on course for Chinese ports. A targeted temporary sanctions waiver could redirect this oil to global buyers and provide an estimated two-week supply buffer during the ongoing US campaign against the Hormuz closure.
The Treasury has previously issued a similar waiver for Russian oil, contributing approximately 130 million barrels to global supply. Bessent confirmed a unilateral US Strategic Petroleum Reserve release beyond the 400 million barrel G7 joint commitment is also planned, with the administration maintaining its position against financial market intervention.
Experts cautioned about the strategic implications. Sanctions lawyers and national security analysts warned that allowing Iranian oil to be sold, even under the most limited waiver, would generate revenue for the Iranian government that could fund military activities and support regional proxy forces. Critics described the plan as a short-term market solution with significant and potentially durable strategic risks.