Global oil markets under siege from Iran’s Hormuz blockade may soon receive an unexpected lifeline in the form of Iranian crude oil itself, Treasury Secretary Scott Bessent disclosed Thursday. Bessent said the administration is considering temporarily lifting sanctions on approximately 140 million barrels of Iranian crude stranded on tankers, providing a short-term supply injection to help bring down prices above $100 per barrel.Iran’s Strait of Hormuz closure has been devastating for global oil supply, removing an estimated 10 to 14 million barrels per day from the market for close to two weeks. The resulting price surge has created economic hardship for oil-importing nations worldwide and has put sustained pressure on governments to find effective emergency supply solutions.Bessent described the stranded Iranian crude, originally bound for Chinese buyers, as an available short-term supply buffer. A targeted temporary waiver, he argued, could redirect this oil to global markets and provide roughly two weeks of price support during the ongoing US campaign to force Iran to reopen the strait.The Treasury has previously issued comparable waivers, including for Russian oil that contributed approximately 130 million barrels to world supply. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also being planned, with Bessent maintaining the administration’s stance against any engagement in financial oil market instruments.Analysts and policy experts raised significant concerns. Compliance specialists and national security analysts warned that any Iranian oil revenue, regardless of the waiver’s scope, would provide the Tehran government with funds to sustain military operations and regional proxy activities. Critics described the plan as a supply-side intervention with serious strategic side effects, warning that it may simultaneously relieve the market and financially empower an adversary.
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