Treasury Secretary Scott Bessent revealed Thursday that the administration is weighing the Iranian crude option despite long-term concerns about its strategic consequences, as the immediate economic pressure from Iran’s Hormuz blockade drives consideration of increasingly unconventional supply measures. Bessent said approximately 140 million barrels of Iranian crude stranded on tankers could be released to global markets through a temporary sanctions waiver.
The long-term concerns acknowledged by the administration center on the strategic consequences of enabling Iranian oil revenues during an active conflict. Despite these concerns, the severity of the immediate economic pressure — with oil prices above $100 per barrel for close to two weeks following the removal of between 10 and 14 million barrels of daily supply — has pushed the Iranian crude option into active consideration.
Bessent confirmed the Iranian crude on tankers, originally destined for Chinese buyers, as the oil under consideration. A targeted temporary waiver could redirect this supply to global markets, providing roughly two weeks of price relief while the US campaign to resolve the Hormuz crisis continues.
The Treasury has previously weighed comparable options despite long-term concerns, including a 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 joint commitment is also being planned, while the administration has ruled out financial market intervention.
Policy experts assessed the weighing process carefully. They argued that the administration’s acknowledgment of long-term concerns is important but insufficient if it does not change the ultimate decision. Compliance professionals warned that proceeding with the Iranian crude option despite long-term concerns about enabling Tehran’s oil revenues would set a pattern that prioritizes short-term economic management over long-term strategic coherence, a pattern that could prove increasingly difficult to reverse.