Despite warning signs from independent experts, Treasury Secretary Scott Bessent confirmed Thursday the administration is actively exploring the Iranian crude option as part of its emergency response to the oil price crisis. Bessent revealed the US is considering temporarily lifting sanctions on approximately 140 million barrels of Iranian crude stranded on tankers, to address oil prices above $100 per barrel caused by Iran’s Hormuz blockade.
Iran’s Hormuz closure has been generating warning signs for global energy markets since it began nearly two weeks ago, removing between 10 and 14 million barrels of daily supply from circulation and driving prices to sustained elevated levels. The warning signs have extended beyond energy markets to include concerns about inflation, economic growth, and geopolitical stability in multiple regions.
Bessent said the approximately 140 million barrels of Iranian crude on tankers in international waters, originally heading toward China, represent an available supply response to these warning signs. A targeted temporary waiver could redirect this oil to global markets, providing roughly two weeks of price support during the US campaign against the Hormuz blockade.
Earlier exploration of comparable options produced 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 prepared, with the administration maintaining its opposition to financial market intervention.
The warning signs from independent experts were explicit. Compliance professionals and national security analysts cautioned that exploring the Iranian crude option — and proceeding with it — would generate oil revenues for the Tehran regime that could fund military activities and proxy support. Critics warned that following the Iranian crude path despite expert warning signs could create more and larger warning signs for the long-term coherence of US Iran policy.