Treasury Secretary Scott Bessent put the Trump administration’s oil market crisis response in the spotlight Thursday by announcing the US may temporarily remove sanctions from Iranian crude oil stranded on tankers in international waters. While Bessent argued the measure would provide critical short-term price relief, independent experts warned the long-term risks could be substantial.
For nearly two weeks, Iran’s closure of the Strait of Hormuz has removed between 10 and 14 million barrels of oil per day from global markets, pushing crude prices above $100 per barrel. The sustained disruption has created economic strain across oil-importing nations and has forced the administration to consider increasingly unconventional supply-side measures.
Bessent disclosed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil that had been heading to China. He presented a temporary sanctions waiver as a tactical supply bridge, saying it would provide global markets with roughly two weeks of relief while US efforts to resolve the Hormuz standoff continue.
The Treasury’s approach is modeled on a previous waiver for Russian oil that added approximately 130 million barrels to global supply. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also in preparation, alongside a clear policy against any intervention in financial oil market instruments.
Experts and analysts were broadly critical. Sanctions compliance professionals warned that any Iranian oil revenue, however narrowly the waiver is scoped, would inevitably benefit the Tehran government and could be channeled toward military activities and proxy support. Critics characterized the proposal as a short-sighted measure that offers the illusion of strategic cleverness while actually providing a meaningful financial lifeline to an active adversary.
