The US is considering an unusual step in the midst of its conflict with Iran – relaxing sanctions on some of the country's oil stockpiles as it tries to manage the big jump in energy prices around the world.

Three weeks into the conflict, the US government says it has not seen any significant impact from its usual measures to stabilise the market. As oil supplies dwindle and prices rise, the Trump administration is now looking at measures it might not have otherwise considered.

Supply crunch forces policy shift

The global oil market has faced a jolt following the near shutdown of the Strait of Hormuz, a vital route for the transport of energy supplies. Brent crude has hit a high of over $110 a barrel, near its multi-year peak, with US fuel prices rising steadily.

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Despite the release of strategic reserves and relaxing of Russian oil sanctions, the gap in supply cannot be filled.

“This is the biggest disruption to the oil markets that you can imagine,” Neelesh Nerurkar, a former senior official at the US Energy Department, said to CNN. Officials now believe that elevated prices could persist for months as the conflict continues.

Sanctions eased on oil already at sea

In response, the administration is considering temporarily allowing the sale of Iranian oil already stored on tankers at sea.

The move is aimed at injecting roughly 140 million barrels into global markets to ease immediate shortages. According to officials who have knowledge of the talks, this oil would likely have been sold regardless, often to countries like China despite existing sanctions.

“Iran was going to sell those barrels anyway,” one such official said to CNN adding that this is a way to stabilise the oil supply by allowing allies to buy it.US Treasury Secretary Scott Bessent described the approach as a way of “using Iranian barrels against Tehran to keep prices down” while maintaining broader economic pressure.

US Ambassador to the United Nations Mike Waltz said the easing would be temporary and targeted at supporting allies such as India and Japan.

Economic pressure meets political contradiction

The move is seen as a balancing act, as the US is engaged in military action against Iran but is also opening economic channels that may benefit the country.

The move is seen as a political gamble, especially for President Donald Trump, as he has in the past criticized similar moves by previous administrations. Experts believe that the move may only be short-lived, as the 140 million barrels of oil is only enough to meet consumption for a day and a half, as this is the total consumption of 140 million barrels.

Limited options as crisis deepens

Officials have explored additional measures, including regulatory changes to ease domestic fuel production, but options are narrowing.

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More aggressive steps, such as restricting exports or direct market intervention, have been ruled out due to potential global disruption. Energy analysts say the situation is approaching a critical point: either restore shipping through the Strait of Hormuz or prepare for prolonged economic strain.

“The reality is there aren’t many good options left,” said Landon Derentz, a former US energy and national security official.