Treasury Secretary Scott Bessent outlined a strategic rationale Thursday for temporarily lifting sanctions on Iranian crude oil stranded on tankers: by freeing this oil for global sale, the US can directly counter the economic leverage Tehran is trying to generate through its Strait of Hormuz closure. Bessent confirmed the administration is actively considering the measure, involving approximately 140 million barrels of Iranian crude in international waters.
Tehran’s strategy in closing the Strait of Hormuz has been to use its control over global oil flows as economic leverage against the United States and its allies. The blockade has been removing between 10 and 14 million barrels of daily supply from global markets for close to two weeks, successfully driving crude prices above $100 per barrel and generating significant economic pressure.
Bessent said the key to countering Tehran’s leverage is redirecting its own oil — approximately 140 million barrels stranded on tankers, originally heading toward China — to global markets through a targeted temporary waiver. This would blunt the price impact of the blockade without requiring Iran’s cooperation, effectively neutralizing a significant portion of Tehran’s economic leverage.
The Treasury has previously deployed this counter-leverage strategy for Russian oil, issuing a waiver that redirected approximately 130 million barrels to world markets. An additional unilateral US Strategic Petroleum Reserve release beyond the G7’s 400 million barrel commitment is also planned, while the administration has firmly ruled out any financial market intervention.
Experts acknowledged the strategic logic but identified a critical flaw. Compliance professionals and national security analysts warned that while the waiver would neutralize some of Tehran’s price leverage, it would simultaneously provide Iran with oil revenues that fund military activities and proxy forces. Critics argued the counter-leverage strategy is incomplete: it reduces Iran’s leverage through the oil price channel while creating new leverage for Iran through the revenue channel.