The U.S. may soon remove sanctions from Iranian oil that is stranded on tankers to help lift global supplies and reduce prices.
US Treasury Secretary Scott Bessent said the US may move to unsanction Iranian oil supply that’s “on the water” within days to help drive down prices.
“In the coming days, we may unsanction the Iranian oil that’s on the water,” Bessent said on Fox Business Thursday.
The US is already allowing Iranian oil to pass through the Strait of Hormuz, and that nation has about 140 million barrels “on the water,” the Treasury chief said. “Depending on how you count it, that’s 10 days to two weeks of supply.”
Iran’s supplies have mainly been heading to China up to now, but once sanctions are eased, that can then go elsewhere, the Treasury Secretary noted.
“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,” Bessent said.
By the time the US moves to “unsanction” floating Iranian oil, there will have been “about 260 million excess barrels of energy” created, Bessent said. “In essence, by the time we unsanctioned the floating Iranian oil, we would have intervened and we would have created about 260 million excess barrels of energy.”
Bessent framed the strategy as part of a broader effort to balance pressure on Iran with energy market stability. He said the U.S. has avoided striking Iranian energy infrastructure even while escalating military operations, arguing the goal is to preserve supply while keeping pressure on Tehran.
Bessent said president Donald Trump would also discuss with the Japanese prime minister Sanae Takaichi at the White House on Thursday about the Japanese navy taking part in securing the safe passage of vessels through the Strait of Hormuz, as that is where Japan gets most of its oil.
“She’s very pro-U.S. I think we’re going to have a very good discussion today,” Bessent added.
