As Congress closely watches the administration’s response to the oil market crisis, Treasury Secretary Scott Bessent disclosed Thursday that the US is mulling a temporary waiver on Iranian crude oil stranded on tankers in international waters. Bessent said the potential measure, involving approximately 140 million barrels of Iranian crude, is part of the emergency supply response to oil prices above $100 per barrel caused by Iran’s Hormuz blockade.
Congressional scrutiny of the administration’s crisis management has been intense, with lawmakers from both parties monitoring the economic impact of Iran’s Hormuz blockade on American consumers and industries. Bessent’s disclosure that Iranian crude oil is under active consideration has added a new dimension to the congressional oversight picture.
Bessent confirmed the Iranian crude on tankers, originally destined for Chinese buyers, as the oil in question. A targeted temporary waiver could redirect this supply to global buyers, he explained, providing roughly two weeks of price relief during the US campaign against the Hormuz blockade.
The Treasury has previously taken comparable steps without explicit congressional authorization, having issued 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 being planned, while the administration has ruled out any financial market intervention.
Congressional observers and policy experts raised questions about both the substance and the process of the Iranian crude option. On substance, compliance professionals warned that enabling Iranian oil revenues would provide funds for military activities and proxy support. On process, legal scholars questioned whether a Treasury waiver of this significance — effectively enabling oil sales by a major US sanctions target during an active conflict — requires congressional notification or approval, a question that adds procedural complexity to an already strategically complex situation.