Treasury Secretary Scott Bessent faced sharp criticism from the sanctions enforcement community Thursday after revealing the US may temporarily lift restrictions on Iranian crude oil stranded on tankers at sea. Bessent argued the measure would help offset the global oil supply shortfall caused by Iran’s Strait of Hormuz blockade, but experts questioned its strategic wisdom and long-term consequences.
Iran’s Hormuz blockade has been creating a daily supply deficit of between 10 and 14 million barrels for close to two weeks, pushing crude prices above $100 per barrel. The sustained disruption has prompted emergency supply discussions at the highest levels of government and has put the administration under intense pressure to act decisively.
Bessent disclosed that approximately 140 million barrels of Iranian crude are currently on tankers in international waters, oil originally destined for Chinese buyers. He presented the temporary sanctions waiver as a practical solution, arguing it would provide roughly two weeks of supply relief during the critical phase of the US campaign against the Hormuz closure.
The Treasury’s approach is modeled on a previous waiver for Russian oil that added approximately 130 million barrels to global supply. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel joint commitment is also planned, with Bessent making clear the administration will not pursue financial market interventions.
The sanctions community responded with alarm. Compliance experts warned that any Iranian oil revenue, even from a narrow and time-limited waiver, would ultimately benefit the Tehran regime and could be directed toward military activities and regional proxy support. Critics described the proposal as fundamentally at odds with the goal of applying maximum economic pressure on Iran, warning it could undermine the effectiveness of the broader sanctions regime.