Treasury Secretary Scott Bessent put Iranian crude oil on the table Thursday as a tool for managing what he described as some of the oil market’s darkest days in recent memory, revealing the administration is considering temporarily lifting sanctions on approximately 140 million barrels of Iranian crude stranded on tankers. Bessent said the oil, originally heading to China, could help the market navigate conditions created by Iran’s Strait of Hormuz blockade.
The oil market’s darkest days characterization reflects the severity of the Hormuz crisis, which has removed between 10 and 14 million barrels of daily supply from global markets for close to two weeks. Oil prices above $100 per barrel for this extended period represent a genuine market crisis with far-reaching economic consequences for industries and consumers worldwide.
Bessent identified the Iranian crude on tankers as a supply resource capable of helping the market navigate its darkest period. A targeted temporary waiver could redirect approximately 140 million barrels to global buyers, providing roughly two weeks of price relief while the US campaign to force Iran to reopen the Strait of Hormuz continues.
The Treasury has previously deployed supply tools to manage market darkness, 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 coordinated commitment is also being prepared, while the administration has explicitly ruled out any financial market intervention.
Policy and compliance experts offered a sobering assessment. They warned that navigating the market’s darkest days by enabling Iranian oil revenues would provide the Tehran regime with funds for military activities and proxy support, potentially contributing to a different kind of darkness — the prolongation of a geopolitical conflict that the US is simultaneously trying to end. Critics argued that the darkest days framing, while emotionally resonant, should not override the strategic requirement to evaluate the full consequences of the proposed market navigation tool.