Treasury Secretary Scott Bessent revealed Thursday that the Trump administration is considering a targeted temporary waiver on Iranian crude oil stranded on tankers at sea, as part of its battle against the oil price spike caused by Iran’s Strait of Hormuz closure. Bessent said the measure would provide critical short-term supply relief, though experts warned of significant strategic risks.
Iran’s Hormuz blockade has persisted for close to two weeks, removing between 10 and 14 million barrels of oil per day from global supply and driving crude prices above $100 per barrel. The disruption has created economic challenges across multiple industries and regions and has put sustained pressure on the administration to find effective supply-side solutions.
Bessent confirmed approximately 140 million barrels of Iranian crude are on tankers in international waters, oil originally destined for Chinese ports. A temporary waiver could redirect this supply to global markets, providing an estimated two-week bridge of price relief while US efforts to resolve the Hormuz standoff continue.
The Treasury has previously issued a similar waiver for Russian oil, which added approximately 130 million barrels to global supply. Bessent also confirmed a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is in development, alongside a firm policy against any Treasury engagement in financial oil market instruments.
Analysts raised significant concerns. Compliance professionals and national security experts warned that enabling Iranian oil sales, regardless of how narrowly the waiver is drawn, would benefit the Tehran regime financially and could fund military operations and proxy activities. Critics described the plan as a tactical response to a strategic crisis that may produce more problems than it solves.
