Treasury Secretary Scott Bessent framed the administration’s potential Iranian oil sanctions waiver as an act of strategic judo Thursday, arguing that redirecting Iranian crude stranded on tankers to global markets would turn Tehran’s own resources against its Strait of Hormuz strategy. Bessent made the announcement as oil prices have remained above $100 per barrel for close to two weeks since Iran’s blockade began.
Iran’s Hormuz closure has removed between 10 and 14 million barrels of daily oil supply from global markets, creating a severe price shock that has affected economies across the world. The administration has come under intense pressure to find supply-side solutions capable of meaningfully offsetting the disruption’s economic impact.
Bessent disclosed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally destined for Chinese ports. He argued that temporarily lifting sanctions on this oil would allow it to reach global buyers and provide roughly two weeks of supply relief, effectively using Iran’s own export capacity against its economic warfare strategy.
The Treasury has used this kind of mechanism before, issuing a waiver for Russian oil that added approximately 130 million barrels to world supply. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also planned, alongside a firm policy against financial market intervention.
Experts and analysts were not entirely convinced by the strategic framing. Compliance professionals and national security specialists warned that while the oil might be redirected to new buyers, Iran would still benefit financially from the sales, receiving revenue that could fund military activities and proxy support. Critics argued that the “turning the tables” framing obscures the very real financial benefit that Tehran would derive from any oil sales authorized under such a waiver.