Treasury Secretary Scott Bessent disclosed Thursday that Iranian crude oil currently stranded on tankers — and originally destined exclusively for Chinese buyers — could soon flow to a much broader range of global buyers if the administration proceeds with a temporary sanctions waiver. Bessent said the measure is under active consideration as part of Washington’s effort to address oil prices above $100 per barrel caused by Iran’s Strait of Hormuz closure.
Iran’s Hormuz blockade has created a daily supply shortfall of between 10 and 14 million barrels, disrupting global energy flows and driving prices to elevated levels that have persisted for close to two weeks. The administration has been exploring multiple supply-side options to close the gap and bring prices down to more manageable levels.
Bessent confirmed approximately 140 million barrels of Iranian crude are stranded on tankers in international waters. A targeted temporary sanctions waiver could redirect this oil from its original Chinese destination to global markets more broadly, providing an estimated two-week supply cushion during the ongoing US campaign against the Hormuz blockade.
The Treasury has successfully applied this approach to Russian oil, adding approximately 130 million barrels to world supply through a previous waiver. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also planned, alongside the administration’s firm stance against financial market intervention.
Experts raised concerns about the broader implications. Compliance specialists and national security analysts warned that allowing Iranian crude to flow to non-Chinese buyers would still generate revenue for the Iranian regime, providing funds for military activities and proxy support. Critics noted the irony of the US effectively acting as a broker for Iranian oil sales to the global market, even while maintaining that it is applying maximum pressure on Tehran.