Treasury Secretary Scott Bessent is considering converting Iran’s stranded tanker fleet into an emergency global supply source, he revealed Thursday. By temporarily lifting sanctions on approximately 140 million barrels of Iranian crude oil in international waters, the administration hopes to inject critical supply into markets disrupted by Iran’s Strait of Hormuz closure and bring prices down from above $100 per barrel.
The Hormuz blockade has created a daily supply deficit of between 10 and 14 million barrels for close to two weeks, generating one of the most acute oil supply crises in recent global energy history. The sustained price surge has created significant economic challenges for oil-importing nations and has put intense pressure on the administration to find effective supply-side responses quickly.
Bessent disclosed the stranded Iranian crude, originally destined for Chinese ports, as a viable short-term supply buffer. A targeted temporary waiver could unlock this oil for global buyers, providing roughly two weeks of price relief during the US campaign to force Iran to reopen the strait.
The Treasury has previously used this kind of mechanism for Russian oil, contributing approximately 130 million barrels to world supply. Bessent also confirmed a unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is planned, while the administration maintains its clear opposition to any financial oil market intervention.
Experts from sanctions and security fields raised substantive concerns. They warned that converting Iranian tankers into an emergency supply source — however tactically appealing — would generate significant oil revenues for the Tehran regime that could fund military operations and proxy activities. Critics described the conconcept as strategically problematic, arguing it provides Iran with a financial windfall during a moment of active conflict with the United States.