Treasury Secretary Discusses Potential Lifting of Iranian Oil Sanctions
On Thursday, Scott Bessent, the Treasury Secretary, appeared on Fox Business Network’s “Morning with Maria” and mentioned that the Trump administration is considering lifting sanctions on approximately 140 million barrels of Iranian oil.
Bessent explained, “We are not targeting the energy infrastructure on Kharg Island, which is where 90% of Iran’s oil is produced. Military strikes were conducted on specific targets on the island, but the energy assets were left untouched.” He noted that Iranian oil continued to be exported from the Gulf, despite withdrawals of some Indian and Chinese tankers. He emphasized that this is part of a coordinated strategy and mentioned a pause in actions taken. “Our strategy involves desanctioning Russian oil while securing supplies in the Strait of Hormuz, considering that there are around 130 million barrels currently at sea.”
He continued, “We anticipated this situation and recognized there might be a temporary choke point. We have that 130 million barrels in floating storage, which means that within days, sanctions on Iranian oil at sea could be lifted. Essentially, this translates to about 140 million barrels, representing around 10 to 14 days’ worth of supply that Iran was exporting, primarily to China. This strategy aims at reducing prices for the next couple of weeks as we advance this campaign.”
Bessent also highlighted, “There’s still plenty we can do moving forward. Recently, a historic coordinated release of 400 million barrels from the Strategic Petroleum Reserve was authorized, and several countries are considering further actions. The U.S. has the option to initiate another SPR release to help maintain lower prices. As you may have noticed, WTI and Brent crude prices have diverged significantly; they were aligned last week. This shift is, in part, due to President Trump’s policies during his first term, which aimed for energy independence. When he suggests that we should collaborate with allies in the Strait of Hormuz, it’s crucial to note that the U.S. also needs this oil—we’re an oil-exporting nation.”
