US considers un-sanctioning Iran oil to mitigate global crude price surge: US Treasury Secy

New Delhi [India], March 19 (ANI): The United States is considering a move to un-sanction Iranian oil as a primary measure to stabilize global energy markets and curb the recent spike in crude prices. United States Secretary of the Treasury Scott Bessent confirmed the strategic shift, describing it as part of a broader "coordinated effort" across the federal government to manage supply.
Speaking to Fox News, Bessent revealed that the administration implemented a "break the glass plan" across the Treasury and the executive branch to address immediate energy security concerns.
Bessent indicated that the U.S. is evaluating the status of Iranian oil as the current campaign progresses. "In the coming days, we may un-sanction the Iranian oil that's on the water. It's about 140 million barrels," he said. He explained that this volume represents roughly "10 days to 2 weeks of supply, that the Iranians had been pushing out, that would have all gone to China."
The Treasury Secretary detailed the tactical reasoning behind these decisions, framing the use of sanctioned reserves as a tool against the originating regimes. "In essence, we will 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," Bessent remarked.
He added that the U.S. possesses "lots of levers" and that there is "plenty more that we can do" to influence global pricing, including the continued use of domestic reserves.
"We un-sanctioned Russian oil. We knew that there were about 130 million barrels on the water and we created supply that is beyond the Strait of Hormuz," Bessent stated. He emphasized that the administration anticipated market volatility, noting that officials "knew that there could be a temporary, and I want to emphasize temporary choke point there, and there was 130 million barrels of floating storage."
Bessent highlighted that the "largest coordinated SPR (Strategic Petroleum Reserve) release in history, 400 million barrels, was approved last week," and suggested that some other countries are going to do more. He noted that the U.S. could "unilaterally do another SPR release to keep the price down."
According to the Secretary, U.S. energy independence has led to a significant divergence between West Texas Intermediate (WTI) and Brent crude prices over recent sessions. "This is because the U.S., thanks to President Trump in his first term, the continuing efforts here is virtually energy independent," he said.
Regarding maritime security, Bessent stressed that international allies must take a more active role in protecting oil transit routes, particularly in the Middle East.
"When President Trump says our allies should join us in a coalition along the straits of Hormuz, they're the ones who need this oil," Bessent noted, pointing out that the U.S. is currently an oil exporter.
He stated that it would be "very disappointing for those who benefit the most not to do something" to assist in escorting ships through the Strait of Hormuz. (ANI)