Who is Scott Bessent?: Scott Bessent is the 60th US Secretary of the Treasury, confirmed in January 2025. A former macro hedge fund manager who ran George Soros's fund and later founded Key Square Group, he is Trump's lead official on sanctions, debt, and economic statecraft.Source: US Senate
Why did Bessent let Iranian oil through the Strait of Hormuz?: Bessent told CNBC the administration was deliberately allowing Iranian tankers through Hormuz to supply global markets and keep oil prices stable, predicting prices would fall well below $80 per barrel after the conflict ends.Source: CNBC
What did Bessent say about Russian sanctions waivers?: Bessent described 30-day waivers on 124 million barrels of Russian crude as "narrowly tailored" and acknowledged Russian territorial gains were "an inevitability", drawing sharp criticism from European leaders including Germany's Chancellor Merz.Source: Treasury Department
Did Trump use Bessent to punish Spain?: Yes. Trump ordered Bessent to cut all Treasury dealings with Spain after Madrid refused US forces base access during the Iran conflict, marking one of the most direct uses of economic coercion against a NATO ally.Source: White House
What is the difference between Scott Bessent and previous Treasury secretaries on sanctions?: Bessent has used sanctions waivers and relief more actively as short-term diplomatic and economic tools than predecessors, issuing waivers on both Russian and Iranian oil during active conflicts rather than maintaining or tightening existing regimes.Source: Lowdown analysis

Background

Scott Bessent is the 60th US Secretary of the Treasury, confirmed by the Senate in January 2025. A veteran macro investor, he spent nearly two decades at George Soros's hedge fund before founding Key Square Group in 2015. His appointment signalled that Trump's second term would treat fiscal and sanctions policy as active geopolitical instruments rather than passive regulatory tools.

Bessent has been central to two of the conflict era's most consequential economic decisions. He told CNBC the administration was deliberately letting Iranian tankers through the Strait of Hormuz to supply global markets, predicting oil would fall "much lower" than $80 once the war ended . He also described 30-day sanctions waivers covering 124 million barrels of Russian crude as "narrowly tailored" while acknowledging Russian territorial gains were "an inevitability" .

The tension at the heart of Bessent's tenure is whether sanctions relief is a negotiating lever or simply capitulation. European partners including Germany's Chancellor Merz called the Russian oil waivers outright "wrong", and Trump separately ordered Bessent to cut all Treasury dealings with Spain after Madrid refused US base access , revealing how rapidly economic coercion is being turned on allies as well as adversaries.

How the World Sees Them

Iran

Tehran benefits directly from Bessent's decision to permit Iranian tankers passage through the Strait of Hormuz during active US airstrikes, generating oil revenues that fund the regime's war effort even as US warplanes struck Iranian coastal defences.

Russia

Moscow has sought sanctions relief since 2022 and welcomed the Treasury waivers as proof the US would accommodate Russian energy exports. RDIF head Kirill Dmitriev immediately lobbied for further easing, arguing global markets could not remain stable without Russian oil.

Ukraine

Kyiv directly opposed the Russian oil waivers, with President Zelensky warning Russia could earn $10 billion in a fortnight from the relaxation, framing the policy as a betrayal of the sanctions architecture Ukraine depends on.

European Union

Brussels treats sanctions as the primary lever of pressure on Russia and Iran, and depends on US coordination to enforce them. Bessent's Russian oil waivers prompted the European Council President to warn the move "impacts European security", while Germany called it outright wrong.