Treasury Secretary Scott Bessent confirmed Thursday that the Iranian oil option is being prepared as part of a layered crisis response to the global oil market disruption caused by Iran’s Strait of Hormuz closure. Bessent revealed the administration is considering temporarily lifting sanctions on approximately 140 million barrels of Iranian crude stranded on tankers, complementing other supply measures already in place.
Iran’s Hormuz blockade has created a daily supply deficit of between 10 and 14 million barrels, a disruption that has kept crude prices above $100 per barrel for close to two weeks. The sustained price surge has created economic challenges worldwide and has required the administration to develop a layered response combining multiple supply-side interventions.
Bessent described the Iranian crude option as the latest layer in the response architecture, to be deployed alongside Strategic Petroleum Reserve releases and other supply measures. A targeted temporary waiver could redirect approximately 140 million barrels of Iranian crude from their original Chinese destination to global markets, providing roughly two weeks of additional supply during the US campaign against the Hormuz blockade.
Earlier layers of the response include a Treasury waiver for Russian oil that added approximately 130 million barrels to world supply. A unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel coordinated commitment is also being prepared, while the administration maintains its position against financial market intervention.
Policy and compliance experts examined the layered response critically. They acknowledged the tactical logic of building multiple supply layers but warned that the Iranian oil option introduces strategic complications not present in the other layers. Enabling Iranian oil revenues, they argued, would provide the Tehran regime with funds for military activities and proxy support, effectively adding an unintended layer to the response — one that benefits an adversary rather than the global market.