As the global oil price crisis enters its third week, Treasury Secretary Scott Bessent revealed Thursday that the US is weighing a temporary waiver on Iranian crude oil stranded on tankers in international waters. Bessent said the potential measure is part of the administration’s effort to stabilize oil prices that have remained above $100 per barrel since Iran’s Strait of Hormuz closure began.
The Hormuz blockade has removed between 10 and 14 million barrels of daily oil supply from global markets for close to two weeks, creating one of the most sustained and severe supply shocks in recent energy history. The persistent price elevation has placed significant economic pressure on oil-importing nations and has generated growing urgency for effective supply-side interventions.
Bessent disclosed that approximately 140 million barrels of Iranian crude are stranded on tankers in international waters, oil originally destined for Chinese ports. A targeted temporary waiver could redirect this oil to global buyers, providing an estimated two-week supply bridge during the US campaign to force Iran to reopen the strait.
The approach draws on a successful precedent from a Treasury waiver for Russian oil 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 being planned, with the administration maintaining its opposition to financial market intervention.
Policy and compliance experts raised significant concerns as the crisis enters its third week. 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 proxy support. Critics described the plan as a measure driven by the growing desperation of the third week of the crisis, warning that its strategic costs could be substantial and lasting.