U.S. Ends Waivers, Threatens Sanctions on Iranian and Russian Oil

The United States will not renew expiring waivers that allowed sales of Iranian and Russian oil already loaded on tankers, Treasury Secretary Scott Bessent announced at a White House briefing. He said the general licenses that covered oil already at sea will lapse and will not be extended.

Bessent specified the waivers applied to oil that was on the water before March 11. A 30-day license for Iranian crude issued on March 20 released an estimated 140 million barrels, he estimated. The Treasury’s Office of Foreign Assets Control had issued a broader license for Russian oil and a revised Russian license set to expire on April 19; an earlier broader waiver had been set to expire on April 11.

Washington also warned it will impose secondary sanctions on countries, banks and other entities that continue to buy Iranian crude or process Iranian oil revenues. Bessent said the Treasury has contacted two Chinese banks about processing Iranian funds and has reached out to officials in Hong Kong, the United Arab Emirates and Oman to identify financial institutions that may be handling Iranian oil proceeds.

U.S. officials have increased maritime enforcement around Iran this week, an action Bessent described as a blockade. The Treasury has sanctioned more than two dozen individuals, companies and vessels involved in transporting Iranian oil. Bessent expressed confidence the enforcement would reduce purchases by China, which historically bought more than 80% of oil shipped by Iran.

Officials framed the measures as actions to pressure Iran over its nuclear program and its support for militant groups. The steps come as the conflict in the Middle East affects global economic outlooks. The European Bank for Reconstruction and Development cautioned that a prolonged war could lower growth in affected countries by about 0.4 percentage points and raise inflation by roughly 1.5 percentage points.

Bessent noted the temporary waivers were initially intended to ease immediate supply disruptions and limit price spikes after strikes at the end of February pushed Brent crude above $100 a barrel. He added that Russia’s revenues from oil exports have continued to rise despite earlier restrictions. The administration said it will not extend the short-term measures and will pursue secondary sanctions where appropriate.