Treasury Secretary Scott Bessent proposed Thursday that the United States harness Iranian crude oil stranded on tankers to offset the massive supply losses caused by Iran’s closure of the Strait of Hormuz. Bessent revealed the administration is actively considering a temporary lifting of sanctions on approximately 140 million barrels of Iranian crude in international waters, redirecting it to global markets where prices have exceeded $100 per barrel.
Iran’s Hormuz blockade has created a daily supply deficit of between 10 and 14 million barrels, a disruption that has now persisted for close to two weeks and has sent shockwaves through global energy markets. The sustained price surge has affected multiple sectors worldwide and has generated urgent demands for supply interventions capable of making a meaningful difference.
Bessent said harnessing the stranded Iranian crude — oil originally destined for Chinese ports — through a targeted temporary waiver would provide global markets with approximately two weeks of supply support during the US campaign to resolve the Hormuz crisis. He framed the proposal as a practical and available solution to an extraordinary supply problem.
The Treasury has previously harnessed Russian oil in a similar fashion, issuing a waiver that added 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, while the administration has firmly ruled out any involvement in financial oil market instruments.
Independent experts raised concerns about the harnessing concept. Sanctions specialists and national security analysts warned that harnessing Iranian oil revenues — even through a narrow temporary waiver — would provide the Tehran regime with financial resources to sustain military operations and fund proxy forces. Critics argued that harnessing an adversary’s oil exports to fight that adversary creates a strategic paradox that undermines the long-term coherence of US Iran policy.