Treasury Secretary Scott Bessent is pursuing the Iranian crude oil option as energy markets demand bold action in response to Iran’s Strait of Hormuz blockade, he revealed Thursday. Bessent said the administration is considering temporarily lifting sanctions on approximately 140 million barrels of Iranian crude stranded on tankers, as oil prices above $100 per barrel create sustained market demand for supply intervention of matching boldness.
Energy market demand for bold action has been building since Iran’s Hormuz blockade began removing between 10 and 14 million barrels of daily supply from global circulation nearly two weeks ago. Traders, energy companies, and market analysts have been calling for supply measures of sufficient scale to meaningfully address the price surge, and the Iranian crude option represents one of the boldest available responses.
Bessent confirmed the Iranian crude on tankers, originally heading toward Chinese buyers, as the bold supply measure under active pursuit. A targeted temporary waiver could redirect approximately 140 million barrels to global markets, providing roughly two weeks of price support while the US campaign against the Hormuz blockade continues.
Earlier bold actions include 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’s 400 million barrel coordinated commitment is also being pursued, while the administration has maintained its clear stance against any financial market intervention.
Independent experts cautioned that energy market demands for bold action should not be the primary driver of decisions with major strategic consequences. Compliance professionals and national security analysts warned that pursuing boldness in supply response at the cost of enabling Iranian oil revenues — funding military activities and proxy support — represents a strategic risk that goes well beyond what energy market participants are equipped to evaluate. Critics argued that bold action needs to be coupled with bold strategic thinking to avoid creating new problems as severe as the one it solves.