US to 'unsanction' Iran oil — then use it against Iran? What it means

US Treasury Secretary Scott Bessent has announced the possible "unsanctioning" of Iranian oil.

The end-game: use it as gambit against the IRGC's chokehold in the Strait of Hormuz.

The move highlights a striking, though not unprecedented, move on the part of the Trump administration amid US-Israel war against the Iranian regime.

Bessent, in an interview on Fox Business on Thursday, frames the move as a bold tactic: using Iran's own sanctioned oil against it to suppress global prices — even as US-Israeli forces press their joint operations against the IRGC (ongoing since February 28, 2026).

Bessent was quoted as saying: "We'd 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. So, we have lots of levers."

He also praised Trump's "all-star team."

Bessent said: “In the coming days, we may unsanction the Iranian oil that's on the water. It's about 140 million barrels.”

“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.”

On the scale and prior action: He noted the US already unsanctioned ~130 million barrels of Russian oil in floating storage, and doing the same for Iran's would create ~260 million “excess barrels of energy” — a “physical intervention” rather than fiddling with futures markets.

Bessent added: “That’s about 10 days to two weeks of supply that the Iranians had been pushing out that would have all gone to China… When we go through, as we plan, to unsanction the Iranian oil, that oil will go up to a market price and it will end up in places other than China.”

He also floated possible Strategic Petroleum Reserve (SPR) releases while ruling out direct intervention in oil futures markets.

The mechanics: Iranian oil already loaded onto tankers (“on the water” / floating storage) has been effectively stranded or heavily discounted due to long-standing US sanctions.

Temporarily lifting those sanctions on this specific ~140 million barrels (not new production) would let it flow freely into global markets.

The intent: This instantly adds supply equivalent to 10–14 days of the shortfall caused by disruptions in the Gulf (e.g., Strait of Hormuz issues from the conflict).

In short: It’s a quick, low-cost way to flood the market and drive prices down without immediately draining US reserves.

The framing: It’s weaponised economics — “Iran’s own barrels against the Iranians.” It would mean, previously sanctioned oil that was heading mostly to China (Iran’s main buyer, at a huge discount) gets redirected or sold at market prices elsewhere, denying Iran full revenue leverage or control while easing pain for US consumers and allies.

Bessent portrays it as one of “lots of levers” the administration has alongside military action.

This builds on a similar move already done with Russian oil cargoes.

Energy price relief: Oil (Brent crude) has surged to ~$112/barrel amid the conflict — nearly 60% above pre-war levels.

Flooding the market with 140 million barrels could blunt gas price spikes, reduce inflationary pressure, and support the economy during wartime.

Strategic leverage: Demonstrates creative use of sanctions as an offensive tool in "hybrid" warfare. It turns Iran’s pre-loaded assets into a US asset for market stabilisation, signals “we have options,” and may weaken Iran’s funding streams indirectly.

Political win: Highlights the Trump team’s pragmatism — economic tools complementing military ones without full reliance on strategic petroleum reserve (SPR) drawdowns.

Temporary fix: Only covers 10–14 days; doesn’t solve deeper supply issues if the campaign drags on.

Who really benefits? Critics argue China may have already contracted much of this oil, or that releasing it effectively “steals” from buyers or still indirectly funds Iran if tankers sell it. Bessent counters it will reroute away from China.

Signaling: Some see it as a sign of pressure (desperation to cap prices during war) rather than strength; others call it “dumb” or risky for eroding sanctions credibility long-term.

Broader risks: Could affect global tanker markets, legal challenges to sanctions waivers, or embolden adversaries if perceived as weakness.

Oil prices, however, still remain highly volatile.

Bessent is outlining a tactical, short-term economic counterpunch in an active conflict.

By "repurposing" Iran’s stranded oil, it is hit multiple targets at once: curb global oil price spikes, free up crude oil already out of Hormuz Strait, protect US pocketbooks, and maintain momentum to dismantle the murderous Iran regime.

As hype is built around this move, akin to a savvy 4D chess, markets and analysts watch whether it actually cools prices — or just buys time.

Still, this fits the Washington's narrative and pattern of aggressive, multi-tool pressure on its adversaries in Tehran.