U.S. Considers Releasing Iranian Oil to Stabilize Prices
The United States may allow sanctioned Iranian oil currently stored on tankers to enter global markets as part of efforts to control rising crude prices. Treasury Secretary Scott Bessent shared these remarks during an interview on Fox Business.
The move is seen as a potential strategy to ease supply constraints and reduce pressure on oil prices amid ongoing geopolitical tensions.
130 Million Barrels Could Enter Global Supply
Bessent revealed that around 130 million barrels of Iranian oil are currently held offshore and could be used to help stabilize the market.
He also noted that Iranian oil exports from the Gulf have continued despite heightened tensions in the region, suggesting some flexibility in enforcement.
Oil Prices Surge After Middle East Escalation
The comments come as global oil prices surged, with Brent crude climbing above $119 per barrel. The spike followed Iran’s attacks on energy infrastructure across the Middle East, which came in response to Israel’s strike on the South Pars gas field.
Rising geopolitical risks have significantly increased volatility in energy markets.
Strait of Hormuz Seen as Temporary Bottleneck
Bessent described recent military activity as one of the most intense phases of strikes on Iran but stressed that the U.S. has avoided targeting Iranian energy facilities.
He also characterized the Strait of Hormuz as a temporary chokepoint, indicating that supply disruptions may not be long-lasting.
U.S. May Also Tap Strategic Oil Reserves
In addition to potentially releasing Iranian oil, Bessent said the U.S. could carry out a unilateral release from its strategic petroleum reserves.
He clarified that the government is not directly intervening in oil futures markets, but instead focusing on increasing available supply through existing reserves and offshore oil.
