Trump Administration Weighs Lifting Sanctions on 140 Million Barrels of Iranian Oil Stranded at Sea

Treasury Secretary Scott Bessent delivered a striking proposal on Thursday that would see the United States temporarily lift sanctions on Iranian oil currently stranded on tankers across the world's oceans. The move, disclosed during an appearance on Fox Business Network, represents Washington's most dramatic attempt yet to tame an energy market thrown into chaos by Iran's closure of the Strait of Hormuz US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water..

Bessent told Fox Business that the administration could act within days. The volume in question is substantial — approximately 140 million barrels of Iranian crude sitting on tankers at sea, enough to cover roughly 10 days to two weeks of the supply shortfall created by the Hormuz blockade US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water.. Much of that oil had originally been destined for China before sanctions trapped it in maritime limbo.

The Treasury Secretary framed the maneuver as an act of economic warfare against Tehran. According to Bessent, the administration would effectively be turning Iran's own crude against it, flooding markets with barrels that Iran can no longer control in order to suppress prices for the near term . The approach mirrors a tactic the Treasury deployed weeks earlier with sanctioned Russian oil stranded on tankers, a move Bessent said added around 130 million barrels to global supplies US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water..

Oil Above $100 and the Hormuz Chokepoint

The urgency behind Bessent's proposal is clear. Oil prices have remained above $100 per barrel for much of the past two weeks, driven by Iran's decision to close the Strait of Hormuz to commercial shipping and its attacks on tankers transiting the waterway . The strait normally carries a significant share of the world's seaborne oil trade, and its closure has created what Bessent described as a deficit of 10 million to 14 million barrels per day in physical supplies US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water..

The International Energy Agency reported last week that oil and product flows through the strait had plummeted dramatically, marking one of the largest supply disruptions in recent memory. American consumers have already felt the effects, with gasoline prices climbing sharply since the conflict escalated in February. Bessent called the blockade a temporary chokepoint and urged allied nations to step up their own contributions to securing the waterway.

Bessent was emphatic that the Treasury would not intervene in financial markets. The distinction matters to energy traders watching for signs of government manipulation. Instead, the administration's strategy is focused entirely on physical supply, ensuring enough crude and refined products reach buyers to prevent prices from spiraling further US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water..

Strategic Reserve and Allied Coordination

Beyond the Iranian oil waiver, Bessent outlined additional measures the administration is prepared to take. He signaled that the United States could carry out a unilateral release of stocks from the Strategic Petroleum Reserve, going above and beyond the coordinated G7 release of 400 million barrels announced last week US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water.. The G7 action was the largest multilateral reserve release in history, but Bessent suggested it may not be enough given the scale of the disruption.

Some within the administration have pushed for caution, however. Military advisers have expressed concern about draining the nation's strategic reserves too aggressively while active conflict continues in the Gulf region. The Department of Energy said following Bessent's interview that there were currently no plans for an additional SPR release, though the administration continues to evaluate all options to keep markets supplied.

The diplomatic dimension of the crisis was also on display on Thursday. President Donald Trump hosted Japanese Prime Minister Sanae Takaichi at the White House, praising her for stepping up on the Iran situation US may remove sanctions on Iranian oil stranded in tankers, Bessent saystheguardian.com·SecondaryScott Bessent says actions will increase oil supply and bring down prices, but long-term effects in question The US may soon remove sanctions on Iranian oil stranded on tankers at sea, the treasury secretary, Scott Bessent, said on Thursday as Washington seeks to curb prices soaring over Iran’s closure of the strait of Hormuz. “In the coming days, we may un-sanction the Iranian oil that’s on the water.. Japan, which depends heavily on oil shipments through the Strait of Hormuz, joined European nations earlier this week in pledging to help stabilize energy markets and ensure safe passage for vessels. Bessent noted that Japan's navy operates some of the most capable minesweeping and mine-detection assets in the world, and expressed confidence that Tokyo would release additional petroleum reserves to supplement the G7 effort US may remove sanctions on Iranian oil stranded in tankers, Bessent saystheguardian.com·SecondaryScott Bessent says actions will increase oil supply and bring down prices, but long-term effects in question The US may soon remove sanctions on Iranian oil stranded on tankers at sea, the treasury secretary, Scott Bessent, said on Thursday as Washington seeks to curb prices soaring over Iran’s closure of the strait of Hormuz. “In the coming days, we may un-sanction the Iranian oil that’s on the water..

China's Role and Shifting Trade Flows

The crisis has also reshaped the dynamics between Washington and Beijing. Bessent singled out China as an unreliable supplier of refined products, noting that Beijing has halted exports of jet fuel and other petroleum products to neighboring Asian countries US may remove sanctions on Iranian oil stranded in tankers, Bessent saystheguardian.com·SecondaryScott Bessent says actions will increase oil supply and bring down prices, but long-term effects in question The US may soon remove sanctions on Iranian oil stranded on tankers at sea, the treasury secretary, Scott Bessent, said on Thursday as Washington seeks to curb prices soaring over Iran’s closure of the strait of Hormuz. “In the coming days, we may un-sanction the Iranian oil that’s on the water.. The accusation carries weight at a moment when global supply chains for refined fuels are already strained by the Hormuz disruption.

The 140 million barrels of Iranian crude on the water had largely been bound for Chinese refineries before sanctions enforcement tightened. By lifting those sanctions, the administration would effectively redirect that oil into global markets more broadly. A source familiar with the Treasury's planning said a potential waiver could accelerate the diversion of oil already destined for China, helping ensure adequate supply and reducing Iran's leverage over the strait US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water..

The geopolitical calculus is complex. Washington is simultaneously waging a military and economic campaign against Tehran while proposing to release Iranian oil that could, in theory, generate revenue for the very regime it is fighting.

Critics Warn of Unintended Consequences

Sanctions experts and foreign policy analysts have raised pointed questions about the proposal's logic. David Tannenbaum of Blackstone Compliance Services warned that the approach was counterproductive, arguing that allowing the sale of Iranian crude could channel money directly back to Tehran's war effort US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water.. The concern is straightforward: even if the oil sales are structured to benefit global supply, Iran as the original producer could capture some economic benefit.

Alex Zerden, founder of Capitol Peak Strategies and a former Treasury Department official, offered a similarly skeptical assessment. Zerden cautioned that Iran would likely profit from the sales, potentially providing additional funding for the regime and its regional proxies US may remove sanctions on Iranian oil stranded in tankers, Bessent sayschannelnewsasia.com·SecondaryUS Treasury Secretary Scott Bessent speaks to the media after two days of meetings with a Chinese delegation in Paris, France, Mar 16, 2026. (File photo: REUTERS/Abdul Saboor) WASHINGTON: The US may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices, US Treasury Secretary Scott Bessent said on Thursday (Mar 19). "In the coming days, we may unsanction the Iranian oil that's on the water.. He expressed doubt that the stopgap measure would reassure markets, given the scale of the ongoing disruption and the uncertain trajectory of the conflict.

Defenders of the approach counter that the alternative — allowing prices to continue rising unchecked — would inflict significant damage on the American economy and on allied nations that depend on Gulf oil. They argue that the waiver is narrowly scoped and time-limited, designed to buy breathing room while the military campaign continues rather than to provide a permanent off-ramp for Iranian sanctions.

What Comes Next

The proposal sits at the intersection of economic strategy and wartime expediency. If the Treasury moves forward with a waiver in the coming days, it would be the second time in weeks that the administration has suspended sanctions on an adversary's oil to stabilize markets — a pattern that suggests Washington views physical supply management as its primary tool for containing the economic fallout of the Gulf conflict.

For energy markets, the near-term trajectory depends on whether the 140 million barrels can be absorbed quickly enough to offset ongoing losses from the Hormuz closure. Analysts note that even a full release of the stranded Iranian crude would cover less than two weeks of the daily deficit, meaning additional measures — whether further SPR releases, increased allied production, or a resolution to the Hormuz blockade itself — will be necessary to prevent a sustained price spike.

The administration faces a narrow window. Bessent indicated the measures are designed to provide 10 to 14 days of price relief, suggesting that Washington expects either a partial reopening of the strait or additional supply commitments from allies within that timeframe. If neither materializes, the Treasury may find itself reaching for increasingly unconventional tools to keep markets from breaking.