Scott Bessent: US Will Use Iranian Oil Against Iran to Keep Global Prices Down

US Treasury Secretary Scott Bessent has said that the United States is considering lifting sanctions on Iranian oil currently “on the water” as part of efforts to stabilise global energy prices amid ongoing tensions in West Asia. The move is aimed at easing the recent spike in oil prices triggered by conflict in the Gulf region.

Speaking in an interview, Bessent indicated that the US may soon allow Iranian oil shipments already at sea to enter global markets. He noted that Iran currently has around 140 million barrels of oil floating offshore, which could translate into roughly 10 days to two weeks of global supply, depending on how it is accounted for.

The US has already permitted Iranian oil to pass through the Strait of Hormuz, a key global shipping route for energy supplies. According to Bessent, releasing these barrels into the market could help offset supply disruptions and bring down prices in the short term.

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He also highlighted that while much of Iran’s oil exports have so far been directed towards China, easing sanctions could allow these supplies to reach other markets. Countries such as Malaysia, Singapore, Indonesia, Japan, and India could potentially receive increased shipments if restrictions are relaxed.

Bessent added that the US may also consider releasing its own strategic reserves alongside this move. He suggested that by the time such measures are implemented, there could be an excess of around 260 million barrels of energy supply globally, partly due to coordinated releases by multiple countries.

The development reflects a broader strategy by the US to manage energy markets during a period of geopolitical instability. While the proposal remains under consideration, it signals a potential shift in policy that could have significant implications for global oil flows and pricing in the coming weeks.

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