Treasury Secretary Scott Bessent confirmed Thursday that Iranian crude oil stranded on tankers is being considered as part of a coordinated international response to the global oil supply crisis caused by Iran’s Strait of Hormuz blockade. Bessent said the potential temporary lifting of sanctions on approximately 140 million barrels of Iranian crude is being developed alongside allied nations that share the economic burden of the blockade’s impact on prices above $100 per barrel.
The coordinated international dimension of the response reflects the global nature of the Hormuz crisis’s economic impact. Iran’s blockade has removed between 10 and 14 million barrels of daily supply from global markets for close to two weeks, affecting allied and partner nations as severely as the United States in many cases, and creating shared incentives for coordinated supply responses.
Bessent said the Iranian crude on tankers, originally heading toward Chinese buyers, is being incorporated into international response planning alongside Strategic Petroleum Reserve releases and other supply measures. A targeted temporary waiver could redirect approximately 140 million barrels to global buyers, providing roughly two weeks of coordinated supply relief during the US-led campaign against the Hormuz blockade.
Earlier coordinated measures include the G7’s 400 million barrel joint petroleum reserve release and 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 commitment is also being prepared, while the administration has maintained its stance against financial market intervention.
International policy experts raised questions about the coordinated framing of the Iranian crude element. Compliance professionals and national security specialists warned that coordinating the enabling of Iranian oil revenues — providing funds for military activities and proxy support — with allied nations raises additional strategic questions about allied exposure to the measure’s consequences. Critics noted that while coordination on Strategic Petroleum Reserve releases is straightforward, coordinating on Iranian sanctions waivers creates a more complex set of precedents for allied Iran policy that deserves careful allied-level deliberation before implementation.