U.S. Treasury Secretary Scott Bessent announced that the U.S. could unsanction more than 100 million barrels of Iranian crude on tankers, a move that could ease the pressure on floating storage as buyers scramble for seaborne volumes.

The most immediate buffer to avoid oil supply shortages—crude in floating storage—is being depleted at a rapid rate as buyers scramble to get their hands on volumes sitting on tankers that are away from the Strait of Hormuz. According to intelligence firm Vortexa, floating storage fell to about 78 million barrels this week from 140 million barrels at the end of last year, according to data cited by Bloomberg. Since the war began, oil on water volumes have been drawing down at an estimated rate of about 1.8 million barrels per day, one of the fastest in years.

The U.S. has already moved to unsanction an estimated 130 million barrels of Russian oil cargoes already on the water, and could do the same with about 140 million barrels of Iranian oil in floating storage, Bessent told FOX Business. Analysts say the unsanctioning of Iranian oil would be difficult to transact because of other major sanctions against Iran in place, including in banking and insurance.

Bessent said the U.S. could unsanction more than 100 million barrels of Iranian crude on tankers, adding that the move would help India attract Russian crude cargoes that are turning mid‑voyage away from China. Analysts say the unsanctioning of Iranian oil would be difficult to transact because of other major sanctions against Iran in place, including in banking and insurance.

If the Treasury proceeds with the unsanctioning, it could provide a critical supply cushion for Asian refiners and help stabilize seaborne oil flows amid ongoing Middle East tensions, while also keeping the market open to non‑Chinese buyers.