Treasury Secretary Bessent Proposes Using Stranded Iranian Oil to Buy Time in Hormuz Standoff

Treasury Secretary Scott Bessent disclosed Thursday that the United States is considering using stranded Iranian crude oil to buy time in the ongoing Hormuz standoff, by temporarily lifting sanctions that would allow approximately 140 million barrels of Iranian oil in international waters to be sold on global markets. Bessent said the measure is intended to stabilize oil prices above $100 per barrel while US diplomatic and military efforts continue.Iran’s Strait of Hormuz blockade has removed an estimated 10 to 14 million barrels of daily supply from global markets for close to two weeks. The sustained disruption has created significant economic hardship for oil-importing nations and has prompted emergency supply discussions among world leaders and energy market officials.Bessent identified the stranded Iranian crude — oil originally destined for Chinese buyers — as a practical short-term solution. A targeted temporary waiver, he said, could redirect this oil to global markets and provide approximately two weeks of price relief during the ongoing US campaign against the Hormuz closure.The Treasury’s plan builds on a previous 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 prepared, alongside the administration’s clear stance against financial market intervention.Experts from the sanctions and national security communities raised substantive objections. They argued that allowing Iranian oil revenues to flow to Tehran, regardless of the waiver’s narrow scope, would provide financial support for military activities and proxy forces. Critics warned the plan creates a fundamental paradox, using limited sanctions relief to fight an adversary while simultaneously providing that adversary with the financial means to continue the fight.