With the G7’s coordinated petroleum reserve release proving insufficient to fully offset the oil supply crisis, Treasury Secretary Scott Bessent announced Thursday that the US is considering additional emergency measures, including temporarily lifting sanctions on Iranian crude oil stranded on tankers in international waters. Bessent said the measure could add approximately 140 million barrels to global supply.
Iran’s Strait of Hormuz closure has created a daily supply gap of 10 to 14 million barrels, and the resulting price surge above $100 per barrel has proven resistant to initial supply-side interventions. The G7’s coordinated release of 400 million barrels from strategic petroleum reserves, while significant, has not been enough to fully offset the impact of the blockade.
Bessent disclosed that around 140 million barrels of Iranian crude are floating on tankers in international waters — oil originally destined for Chinese buyers. A targeted temporary sanctions waiver could redirect this oil to global markets, providing an estimated two-week supply bridge while the US continues to apply pressure on Iran to reopen the strait.
The Treasury previously issued a similar waiver for Russian oil, adding approximately 130 million barrels to global supply, and Bessent confirmed a unilateral US Strategic Petroleum Reserve release beyond the G7 commitment is also being planned. He was emphatic that the administration would not seek to intervene in financial energy markets.
However, sanctions and security experts cautioned that the measure carries serious risks. They argued that any revenue Iran receives from oil sales, even under a narrow temporary waiver, would provide the regime with funds to sustain military operations and proxy activities. Critics described the proposal as a short-term fix that could create long-term strategic problems by providing a financial lifeline to an adversary.