• The US may lift sanctions on 140 million barrels of Iranian oil in offshore tankers.
• This decision aims to mitigate surging crude oil prices influenced by regional conflict.
• Treasury Secretary Scott Bessent anticipates this move may affect global oil supply within days.
• The closure of the Strait of Hormuz has exacerbated supply fears and contributed to high prices.
• The potential policy mirrors recent decisions to allow sales of sanctioned Russian oil.

The U.S. government is contemplating the removal of sanctions on approximately 140 million barrels of Iranian oil currently stranded in offshore tankers. This strategic decision is intended to bolster global oil supplies and ease escalating prices, according to Treasury Secretary Scott Bessent. He indicated that this unsanctioning could happen in the next few days, providing about 10 to 14 days' worth of supply to the market, amidst increasing global demand driven by recent geopolitical tensions, particularly in the Gulf region, according to aa, indiatimes, and channelnewsasia.

Bessent elaborated that incorporating this Iranian crude into global supplies is aimed at mitigating an ongoing price surge where crude oil prices remain above $100 per barrel. The closure of the Strait of Hormuz, a critical oil transit route, has contributed substantially to the price volatility as it typically facilitates around 20 million barrels per day of oil transit. The U.S. administration estimates that the supply disruption has created a deficit of roughly 10 million to 14 million barrels per day, adversely affecting global energy security, according to aa, indiatimes, and channelnewsasia.

The move to unsanction Iranian oil could also parallel the U.S.'s recent decision to temporarily allow the sale of Russian oil that was similarly stranded, effectively increasing the supply of crude to the global market. Bessent emphasized that the aim is to provide actual supplies rather than intervene in financial oil futures markets, thus clarifying the administration's focus on physical market supply as opposed to speculative trading, according to aa, indiatimes, and channelnewsasia.

As the region experiences heightened tensions, Bessent remarked that the U.S. would consider additional actions to maintain oil supply stability, including a unilateral release from the Strategic Petroleum Reserve. With the potential for Japan and other allies to increase their roles in ensuring safe passage through the Strait of Hormuz, the U.S. administration is keen on collective measures to mitigate disruptions in energy markets, according to aa, indiatimes, and channelnewsasia.