With signs emerging that Iran’s Strait of Hormuz blockade could last weeks longer than initially anticipated, Treasury Secretary Scott Bessent revealed Thursday the administration is eyeing Iranian crude oil stranded on tankers as a sustained supply solution. Bessent said a temporary lifting of sanctions on approximately 140 million barrels of Iranian crude could provide critical supply relief while the US campaign to reopen the strait continues.
The prospect of a prolonged Hormuz blockade has added urgency to the administration’s supply response. Iran’s closure has already removed between 10 and 14 million barrels of daily supply from global markets for close to two weeks, and if the blockade continues beyond the two-week window estimated by Bessent for the Iranian crude supply bridge, additional supply measures would be needed.
Bessent confirmed the Iranian crude on tankers, originally heading toward Chinese buyers, as a supply measure that could be deployed to buy time during a potentially prolonged blockade. A targeted temporary waiver could redirect approximately 140 million barrels to global markets, providing roughly two weeks of supply support while the US campaign against the Hormuz closure develops.
The Treasury has previously deployed comparable sustained supply measures, 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 commitment is also being prepared, while the administration has explicitly ruled out financial market intervention.
Analysts raised concerns about the implications of a prolonged blockade scenario. Compliance professionals and national security specialists warned that if the blockade lasts weeks longer, the two-week Iranian crude bridge would need to be followed by additional measures, each potentially carrying further strategic costs. Critics argued that planning for a prolonged blockade by enabling successive rounds of Iranian oil revenues would significantly strengthen Tehran’s financial position over time, making the strategic costs of the extended crisis far greater than those of the initial two-week response.