Treasury Secretary Scott Bessent confirmed Thursday that the potential Iranian crude oil waiver is being considered as part of a whole-of-government response to the oil market crisis caused by Iran’s Strait of Hormuz blockade. Bessent said the measure, involving approximately 140 million barrels of Iranian crude stranded on tankers, represents the Treasury’s contribution to a broader cross-agency effort to address oil prices above $100 per barrel.
The whole-of-government response to the Hormuz crisis has engaged multiple agencies and departments across the administration, reflecting the breadth of the impact of Iran’s blockade on US interests. With between 10 and 14 million barrels of daily supply removed from global markets for close to two weeks, the crisis has required economic, diplomatic, and military responses working in concert.
Bessent confirmed the Iranian crude on tankers, originally destined for Chinese ports, as a potential Treasury contribution to the whole-of-government response. A targeted temporary waiver could redirect approximately 140 million barrels to global buyers, providing roughly two weeks of supply support during the broader campaign to resolve the Hormuz crisis.
Treasury’s earlier contributions to the whole-of-government response include 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 in development, alongside the administration’s firm opposition to financial market intervention.
Policy experts raised concerns about the whole-of-government framing. Compliance professionals and national security analysts warned that while Treasury’s supply contribution is a legitimate component of a whole-of-government response, it should not be made in isolation from the strategic considerations being managed by other agencies. Critics argued that a truly coordinated whole-of-government response would balance the supply benefit of the Iranian crude waiver against the military and diplomatic costs of enabling Iranian oil revenues, a balance the current proposal may not have adequately achieved.