Iranian oil sanctions have been thrust into the spotlight by Treasury Secretary Scott Bessent’s Thursday announcement that the US may temporarily lift restrictions on Iranian crude stranded on tankers at sea. Bessent said the measure is part of the administration’s plan to stabilize oil prices that have remained above $100 per barrel since Iran’s closure of the Strait of Hormuz.
The Hormuz blockade has removed an estimated 10 to 14 million barrels of daily oil supply from global markets for close to two weeks, creating one of the most significant energy supply shocks in recent history. The resulting price surge has raised economic alarm in multiple regions and has forced governments worldwide to consider emergency supply measures.
Bessent disclosed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil that had been heading toward Chinese buyers. He argued that a targeted temporary waiver could redirect this supply to global markets, providing roughly two weeks of price relief during the US campaign to reopen the strait.
The approach builds on a previous Treasury waiver for Russian oil that contributed approximately 130 million barrels to world supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also planned, with Bessent emphasizing the administration’s focus on physical supply and its opposition to financial market intervention.
Experts in sanctions law and international security expressed concern. They warned that allowing Iranian oil to be sold, even under a strictly temporary and narrow waiver, would provide the Tehran regime with oil revenues that could be directed toward military activities and proxy support. Critics called the plan a significant and potentially costly departure from the logic of maximum economic pressure on Iran.