Treasury Secretary Scott Bessent outlined a comprehensive emergency oil supply strategy Thursday that includes the potential temporary lifting of sanctions on Iranian crude oil stranded on tankers in international waters. The strategy is designed to respond to a global oil price crisis that has kept crude above $100 per barrel since Iran shut down the Strait of Hormuz.
The Hormuz blockade has created a daily oil supply deficit of between 10 and 14 million barrels, one of the most disruptive events for global energy markets in recent years. The sustained price spike has raised inflation concerns, strained government budgets, and elevated costs for businesses and consumers worldwide.
At the center of the plan is a potential temporary waiver on approximately 140 million barrels of Iranian crude stranded on tankers — oil originally bound for Chinese ports. Bessent estimated this supply could provide roughly two weeks of market relief, describing it as using Iran’s own oil against its economic warfare strategy of blocking the strait.
The broader strategy also includes a unilateral US release from the Strategic Petroleum Reserve, beyond the 400 million barrel G7 coordinated commitment, and draws on a precedent set by an earlier Treasury waiver for Russian oil that added approximately 130 million barrels to global supply. Bessent was clear that the administration’s actions would be limited to physical supply and would not extend to financial market interventions.
Independent experts and policy analysts were skeptical of the plan’s strategic coherence. Compliance professionals warned that any Iranian oil revenue, regardless of the waiver’s narrow framing, would benefit the Tehran regime and could fund military operations and proxy support. Critics described the strategy as tactically inventive but strategically flawed, trading short-term price gains for potential long-term geopolitical losses.