The United States is weighing a move to lift sanctions on a large volume of Iranian oil currently stranded at sea, in an effort to boost global supply and bring down rising prices, Treasury Secretary Scott Bessent said on Thursday.
Speaking in a television interview in Fox Business, Bessent said roughly 140 million barrels of Iranian crude held on tankers could soon be allowed into the market.
He explained that releasing this oil would provide a short-term supply boost equivalent to about 10 to 14 days of global demand, helping to ease pressure on prices that have surged amid ongoing tensions in the Gulf.
Effort to Stabilise Oil Markets
Global oil prices have remained above $100 per barrel in recent weeks, driven largely by disruptions linked to Iran’s actions in the Strait of Hormuz—a key route for international energy shipments.
Bessent said allowing Iranian oil into circulation is part of a broader US strategy to stabilize physical supply rather than interfere with financial markets.
“We are not intervening in futures markets. Our focus is on increasing real, physical supply,” he emphasized.
He added that Washington is also considering further releases from the US Strategic Petroleum Reserve, beyond the previously coordinated action by G7 nations, which collectively injected hundreds of millions of barrels into global markets.
Previous Moves and Supply Gap
The Treasury has already taken a similar step with Russian oil, previously under sanctions, allowing around **130 million barrels** stuck on tankers to enter global supply.
Despite these efforts, Bessent acknowledged a significant shortfall remains, estimating a daily supply deficit of 10 to 14 million barrels due to the effective closure of the Strait of Hormuz
Japan Talks and Security Concerns
Bessent also said Donald Trump was scheduled to meet Japanese Prime Minister Sanae Takaichi to discuss energy security and maritime safety in the Gulf.
Japan, heavily dependent on oil imports from the region, may consider additional releases from its own strategic reserves. Discussions are also expected to cover the possible role of Japan’s navy in ensuring safe passage for tankers through the Strait.
Concerns Over Global Supply Chains
In addition, Bessent raised concerns about China’s role in energy markets, describing it as an “unreliable” supplier of refined petroleum products. He noted that reduced Chinese exports of fuels such as jet fuel have added further strain to already tight supply conditions in Asia.
