Scott Bessent, the U.S. Treasury Minister, said the United States could soon lift sanctions on Iranian oil stuck at sea to expand global crude supply and stabilize prices.
Minister Bessent said on the 19th (local time) on Fox Business Network that "within the next few days we could lift sanctions on Iranian oil loaded at sea," putting the volume at about 140 million barrels (Bbl).
Bessent said that "there are differences depending on the calculation method, but this is the volume Iran has been continually sending to market, equivalent to about 10 days to two weeks of supply," adding that it was "mostly volumes headed to China." He added that the aim is "to use Iranian oil to check Iran while keeping oil prices low for the next 10–14 days."
He also assessed that if one assumes the Strait of Hormuz is blocked, causing supply disruptions of 10 million to 14 million barrels per day, that volume could help stabilize the market for about three weeks.
Minister Bessent also mentioned the possibility of releasing crude from the Strategic Petroleum Reserve (SPR). He said, "Some countries will move to release more, and the United States, too, can unilaterally release additional SPR to stabilize prices."
Earlier, the 32 member countries of the International Energy Agency (IEA), including the United States and South Korea, decided to release a record total of 400 million barrels from strategic reserves. The United States joined by releasing 172 million barrels from its SPR, and on top of that, it means more volumes will be supplied to the market.
He drew a line against intervening in the crude futures market. He said, "There is speculation that the Treasury will intervene in the futures market, but we will never do that," adding, "We can intervene in the physical market, but we do not intervene in financial markets."
On a military response to protect shipping lanes in the Strait of Hormuz, he predicted that international coordination would form over time.
He predicted that "the North Atlantic Treaty Organization (NATO) and some Asian allies will not directly engage in combat, but eventually a global coalition will be formed to protect ships transiting the strait." He added, "It would be very disappointing if the countries that benefit the most do not participate."