Responding to growing calls for immediate oil market relief, Treasury Secretary Scott Bessent revealed Thursday that the administration is exploring a temporary waiver on Iranian crude oil stranded on tankers in international waters. Bessent said the measure would help address the supply shortfall caused by Iran’s Strait of Hormuz closure, which has kept oil prices above $100 per barrel for close to two weeks.
Iran’s Hormuz blockade has created a daily supply deficit of between 10 and 14 million barrels, one of the largest and most sudden oil supply disruptions in recent global energy history. The sustained price surge has placed significant economic pressure on oil-importing countries and has generated urgent demands for effective supply-side interventions.
Bessent confirmed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally bound for Chinese buyers. A targeted temporary waiver could unlock this supply for global sale, providing an estimated two weeks of price relief while the US continues its efforts to resolve the Hormuz standoff.
The plan draws on a successful precedent from a Treasury waiver for Russian oil that added approximately 130 million barrels to world supply. Additional supply from a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated drawdown is also in development, with the administration maintaining a firm policy against financial market intervention.
Independent analysts responded with skepticism and concern. Compliance experts and national security specialists warned that any oil revenue flowing to Tehran would benefit the Iranian regime financially, providing resources for military operations and proxy force support. Critics described the measure as a short-term market fix with potentially significant and lasting strategic consequences for US Iran policy.
