Scott Bessent reveals bizarre US strategy letting Iranian oil tankers transit Strait of Hormuz

Treasury Secretary Scott Bessent revealed that the United States is currently allowing Iranian oil tankers to transit the Strait of Hormuz, an unusual strategy given the recent tensions. Bessent, who is in Paris for trade talks with China, explained the reasoning during a CNBC interview.

“The Iranian ships have been getting out already, and we’ve let that happen to supply the rest of the world,” Bessent told Sullivan. The president’s administration believes that tanker traffic through the strait will actually increase before the U.S. Navy and allied forces begin escorting commercial ships. Bessent added, “We think that there will be a natural opening that the Iranians are letting out, and for now we’re fine with that. We want the world to be well supplied.”

This policy comes despite a significant plunge in tanker traffic through the Strait of Hormuz, largely due to ongoing Iranian attacks. Despite a large U.S. Navy presence in the region, the Islamic Republic has continued to export millions of barrels of oil through this crucial, narrow sea route, maintaining exports of about 1.5 million barrels per day. President Trump is actively pressuring nations that rely on the strait for their oil supplies to assist the U.S. in protecting tankers from these Iranian assaults.

The Strait of Hormuz is incredibly important, connecting the Persian Gulf to the global market and serving as the world’s most vital trade route for oil

Many of these shipments are heading to key global markets. Bessent confirmed that tankers supplying India have successfully transited the strait, and the U.S. also believes some Chinese ships are making it out of the Gulf. India, in particular, saw a ship loaded with liquefied petroleum gas arrive on Sunday, according to a spokesperson for New Delhi’s Ministry of External Affairs. A second ship is expected to arrive on Tuesday. India is reportedly waiting for confirmation from Iran for another 22 vessels.

Before the current conflict, roughly 20% of global oil supplies passed through this narrow waterway. However, oil prices have surged by about 40% since the U.S. and Israel attacked Iran two weeks ago, triggering what the International Energy Agency describes as the largest oil supply disruption in history.

Exports through the strait have collapsed, and global oil supplies are expected to plunge by 8 million barrels per day this month. Brent oil prices, the international benchmark, were hovering around $102 per barrel on Monday, while U.S. oil prices traded around $95 per barrel.

Looking ahead, Bessent expressed optimism that oil prices should fall “much lower” than $80 per barrel once the war concludes. While he admitted he doesn’t know when the conflict will end, he firmly believes that “the world will be safer and we will be better supplied” afterward. Bessent also quickly dismissed market rumors suggesting the administration might intervene in oil futures trading.

“We haven’t done that,” the Treasury secretary stated, noting that it’s unclear what authority the U.S. could even use to take such an action.