Treasury Secretary Scott Bessent signaled Thursday that Iranian crude oil stranded on tankers could enter global markets within days if the administration proceeds with a temporary sanctions waiver. Bessent said the potential release of approximately 140 million barrels of Iranian crude is under active consideration as part of the emergency supply response to oil prices above $100 per barrel caused by Iran’s Hormuz blockade.
Iran’s Strait of Hormuz closure has been removing between 10 and 14 million barrels of daily supply from global markets for close to two weeks, creating a sustained price shock with broad economic consequences. The prospect of Iranian crude entering global markets within days has generated significant interest and concern among energy traders, policy experts, and national security analysts.
Bessent confirmed the approximately 140 million barrels of Iranian crude on tankers — oil originally destined for Chinese buyers — as the supply in question. A targeted temporary waiver issued in the coming days could redirect this oil to global buyers, providing an estimated two-week supply bridge during the US campaign against the Hormuz blockade.
The Treasury has previously demonstrated the ability to move quickly on comparable measures, having issued a waiver for Russian oil that added 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 planned, with the administration maintaining its firm opposition to financial market intervention.
Experts reacted to the days-timeline signal with concern. Sanctions compliance professionals and national security analysts warned that moving quickly to enable Iranian oil sales could be seen as demonstrating that US sanctions can be suspended under market pressure, potentially weakening the deterrent effect of sanctions against Iran and other countries. Critics urged the administration to carefully consider the long-term sanctions credibility implications before proceeding within days.