Global oil markets awaiting an emergency supply boost received significant news Thursday when Treasury Secretary Scott Bessent revealed the US is considering temporarily lifting sanctions on Iranian crude oil stranded on tankers in international waters. Bessent said the approximately 140 million barrels of Iranian crude at sea could provide critical additional supply to markets where prices have held above $100 per barrel since Iran’s Hormuz blockade began.
Iran’s Hormuz blockade has created a daily supply shortfall of between 10 and 14 million barrels for close to two weeks, generating sustained price pressure that has affected economies worldwide. Markets have been awaiting emergency supply measures of sufficient scale to make a meaningful difference, and Bessent’s announcement has raised hopes for a significant near-term boost.
Bessent described the stranded Iranian crude, originally heading toward Chinese ports, as a targeted supply solution that could be activated through a temporary waiver. He estimated the oil would provide approximately two weeks of supply support to global markets while the US continues its campaign to force Iran to reopen the strait.
The Treasury has previously activated comparable supply boosts through a waiver for Russian oil that added approximately 130 million barrels to world markets. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also being prepared, with the administration ruling out any involvement in financial oil market trading.
Experts and compliance professionals raised concerns about the proposed boost. They warned that enabling Iranian oil revenues, even within a narrow temporary waiver, would provide the Tehran regime with financial resources for military activities and proxy support. Critics noted that while markets may welcome any emergency supply boost, the strategic consequences of using Iranian crude as the source of that boost carry implications that will outlast any short-term price relief.