With oil prices threatening broader economic stability, Treasury Secretary Scott Bessent revealed Thursday that the US is eyeing a temporary waiver on Iranian crude oil stranded on tankers in international waters. Bessent said the potential measure, involving approximately 140 million barrels of Iranian crude, is part of the administration’s effort to prevent the oil price surge above $100 per barrel from causing lasting economic damage.
Iran’s Hormuz blockade has been the principal cause of the current price surge, removing an estimated 10 to 14 million barrels of daily supply from global markets for close to two weeks. The sustained disruption has raised fears of broader economic damage, including accelerated inflation, slower growth, and increased financial market volatility in oil-dependent economies.
Bessent identified the stranded Iranian crude, originally heading toward Chinese buyers, as an available buffer that could be deployed through a targeted temporary waiver. He said the oil would provide roughly two weeks of supply support to global markets during the US campaign to force Iran to reopen the strait, helping to prevent the price surge from threatening broader economic stability.
The Treasury’s approach is modeled on a previous waiver for Russian oil that added approximately 130 million barrels to world supply. Bessent confirmed an additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also being planned, alongside the administration’s clear stance against any financial market intervention.
Policy and compliance experts raised substantive concerns. They warned that enabling Iranian oil revenues, regardless of the waiver’s scope, would provide the Tehran government with financial resources for military activities and regional proxy support. Critics argued the plan prioritizes short-term economic stabilization over the long-term strategic goal of economically isolating Iran, warning that the financial benefit to Tehran could prove more lasting than the market benefit to consumers.