US Treasury Secretary Scott Bessent put forward one of the most controversial energy policy proposals in recent years Thursday, suggesting that Washington may temporarily lift sanctions on Iranian oil stranded on ships at sea. The announcement came as oil prices have remained stubbornly elevated above $100 per barrel following Iran’s closure of the strategically critical Strait of Hormuz.
Iran’s blockade of the strait has created a significant gap in global oil supplies, estimated at 10 to 14 million barrels per day. The effect on energy prices has been immediate and severe, with global crude benchmarks crossing and holding above $100 per barrel for nearly two weeks, straining economies from Asia to Europe.
Bessent described some 140 million barrels of Iranian crude stranded on tankers — oil originally earmarked for Chinese buyers — as a potential short-term solution. He stated that by temporarily lifting sanctions and allowing this oil to reach global markets, the US could bridge approximately 10 to 14 days of the supply deficit while ongoing military and diplomatic efforts continue.
The Treasury’s plan also includes an additional unilateral drawdown from the US Strategic Petroleum Reserve, supplementing the 400 million barrels already pledged through a G7 coordinated release. Bessent categorically ruled out any intervention in financial oil markets, framing the strategy purely as a physical supply response to a physical supply shortage.
However, experts specializing in sanctions enforcement and geopolitical strategy were unconvinced. Several argued that the sale of Iranian oil, under any waiver structure, would provide the Iranian regime with significant financial resources that could be redirected toward military and political objectives. Critics warned that the plan risks trading a modest and brief price improvement for a strategic concession that benefits Tehran far more in the long run.