US to release 140 million barrels of sanctioned Iranian oil floating on water, says Bessent

Amid the rising global crude prices, the US may permit sanctioned Iranian oil currently stored on vessels to enter the market. Speaking to news outlet Fox Business on Thursday (Mar 19), Treasury Secretary Scott Bessent said there were approximately 130 million barrels of Iranian oil on water. This he said, could be used to regulate the price, which is soaring.

Treasury Secretary Bessent indicated that the US is prepared to "unsanction" roughly 140 million barrels of Iranian crude currently held in floating storage at sea. This move is a tactical attempt to flood the physical market and cool a massive price spike that saw benchmark Brent oil jump above $119 a barrel today. Bessent labeled Wednesday as the most intense night for strikes on Iran while clarifying that the US avoided targeting Iranian energy assets. He described the Strait of Hormuz as a temporary bottleneck.

The Treasury Secretary noted the US might launch a unilateral reserve release as part of its strategy. He specified the administration is not manipulating oil futures but is instead boosting physical supply using "oil on water."