"In the coming days, we may unsanction the Iranian oil that's on the water. He said that would make up about 140 million barrels - about 10 days to two weeks of supply. In essence, we'd 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. So, we have lots of levers."
"The White House has been able for the past few weeks to contain prices with various assurances and policies - promising tanker escorts through the critical Strait of Hormuz, waiving the Jones Act, and temporarily lifting sanctions on Russian oil."
"The administration appears to be conceding something in war that it was unwilling to give in peace. The U.S. has to dial back sanctions to offset the second order effect of war. It speaks to the instability of the situation."
Brent crude oil prices have surged 10% in the past day, reaching approximately $111 per barrel—nearly 60% above pre-war levels. Treasury Secretary Bessent indicated the administration may unsanction Iranian oil currently on the water, representing about 140 million barrels or 10-14 days of global supply. This move would temporarily stabilize prices while military operations continue. The White House has previously managed price pressures through tanker escorts in the Strait of Hormuz, Jones Act waivers, and temporary Russian oil sanctions relief. Unsanctioning Iranian oil represents a significant policy shift, as it concedes in wartime what was refused during peacetime negotiations. Sanctions expert Nicholas Mulder notes this reflects the instability of the current situation and necessity to offset war's secondary economic effects.
Read at Axios
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