A proposal from Treasury Secretary Scott Bessent to potentially lift US sanctions on Iranian oil stranded on tankers has generated intense discussion among energy analysts, national security experts, and policy makers. Bessent made the announcement Thursday, arguing the move would bring much-needed oil supply to global markets and help reduce prices that have climbed steeply since Iran shut down the Strait of Hormuz.
For two weeks, oil prices have remained above $100 per barrel as Iran’s Hormuz closure has removed between 10 and 14 million barrels per day from global circulation. The shortage has been felt across multiple industries and has put pressure on governments around the world to find emergency supply solutions.
Bessent told a financial news audience that 140 million barrels of Iranian oil are currently stranded on tankers, oil that had been on track to reach Chinese customers. He said lifting sanctions on this oil — even temporarily — could relieve market pressure for 10 to 14 days, which he described as the timeframe needed for the US campaign to progress.
The Treasury’s toolkit also reportedly includes an additional unilateral release from the US Strategic Petroleum Reserve, on top of the 400 million barrel G7 release already announced. Bessent was categorical that the administration plans to address physical supply, not financial market pricing, with these interventions.
The proposal drew immediate pushback from the sanctions and security policy community. Multiple experts argued that allowing any oil revenue to reach the Iranian government — regardless of the circumstances — would be counterproductive to the US maximum pressure strategy and would provide Tehran with funds to continue its regional military activities. One prominent compliance analyst called the plan fundamentally illogical.