U.S. Weighed Seizing Iranian Oil Tankers But Held Off Amid Market and Geopolitical Risks

U.S. officials have discussed the possibility of seizing oil tankers carrying Iranian crude to increase pressure on Tehran, but have refrained from doing so over concerns about retaliation and disruption to global oil markets, according to The Wall Street Journal.

The White House reportedly considered such a move as part of its wider strategy to compel Iran toward an agreement in ongoing nuclear negotiations — the first round of which was held last Friday in Muscat, Oman. However, U.S. decision-makers have so far declined to act on these discussions.

Under U.S. sanctions efforts this year, more than 20 vessels linked to Iranian crude shipments have been designated as targets by the Treasury Department. These so-called “shadow fleet” tankers operate under opaque ownership and are used to transport Iranian oil — often in violation of U.S. sanctions — to buyers such as China.

Market and Strategic Risks

Officials cited several reasons for holding off on tanker seizures:

• Retaliation by Iran: Washington is wary that Tehran could respond by seizing tankers carrying crude for U.S. allies or by taking actions to disrupt shipping through the Strait of Hormuz — a maritime chokepoint through which about a quarter of global oil supplies transit. Such retaliation could sharply push up oil prices and heighten geopolitical instability.
• Oil Market Impact: A direct U.S. seizure of Iranian tankers or cargo could prompt an immediate price spike as traders price in the risk of supply disruption. That dynamic already underpins higher crude prices amid wider tensions in the Middle East.

Context of Sanctions and Enforcement

The discussions build on recent U.S. actions targeting vessels involved in sanctions avoidance. In December, the United States imposed sanctions on 29 ships and associated firms engaged in transporting petroleum products linked to Iran’s oil exports, part of a broader effort to deny Tehran oil revenue that could fund nuclear, missile, or proxy activities.

The administration has also pursued the so-called “shadow fleet” off Venezuela and elsewhere, enforcing sanctions via naval interdictions and legal designations. The result has been increased scrutiny of oil tanker movements and a tightening of sanction-evasion routes.

Global Implications

While diplomatic channels remain open and recent talks have signaled both sides are willing to continue negotiations, the tanker issue underscores the delicate balance between coercive economic measures and market stability. Oil markets have remained wary this week as traders evaluate whether geopolitical risks will morph into real disruptions or be contained through diplomacy.