The United States is considering a significant policy shift by removing sanctions on Iranian oil that is currently stranded on tankers at sea. US treasury secretary Scott Bessent said on Thursday that the move is aimed at increasing global crude supply and easing pressure on prices.
“In the coming days, we may unsanction the Iranian oil that’s on the water. It’s about 140 million barrels,” Bessent told Fox Business Network, adding that a sizeable amount of Iranian crude is currently sitting on ships and could soon be allowed to flow into global markets. Track US-Iran war LIVE updates
Bessent claimed that the volume is significant enough to temporarily offset supply shortages caused by disruptions in the region. He said the additional supply could help contain prices for the next 10 to 14 days, at a time when global markets are facing a supply gap.
The move marks a u-turn from America’s long-standing policy, which has relied on energy sanctions to pressure Iran over its nuclear programme. However, this follows a similar temporary easing of restrictions on Russian oil earlier.
The Treasury Department has in the past allowed the sale of sanctioned Russian oil stranded on tankers.
Re-routing Iranian oil to global buyers
If sanctions are eased, Iranian oil currently flowing largely to China could be redirected to other markets, Bessent said.
“It can flow into Malaysia, Singapore, Indonesia, Japan, India — who have been good actors in this.”
“We will be using the Iranian barrels against the Iranians to keep the price down for the next 10 or 14 days as we continue this campaign,” he told the US-based broadcaster.
Asia, which depends heavily on crude imports from the Persian Gulf, is among the most exposed regions to supply disruptions. Refiners across the region have already begun seeking alternative sources, including increased imports from the United States.’
The proposal comes amid a broader supply crunch triggered by regional tensions.
Traders and analysts, cited by Bloomberg, estimate that more than 15 million barrels per day of oil flows have been disrupted.
With continued risks to energy infrastructure, prices could rise further.
