The US will not renew a 30-day waiver of sanctions on Iranian oil at sea that expires this week, and quietly let a similar waiver on sanctions on Russian oil expire over the weekend, two administration officials told Reuters on Tuesday, as the US imposes a blockade on shipments from Iranian ports.
Tuesday's move signals that "Treasury is going full force on Economic Fury" on Iran, an apparent reference to Operation Epic Fury, the US-led military campaign against the country, one of the officials said.
The waiver, which the Treasury Department issued on March 20, allowed some 140 million barrels of oil to reach global markets and helped relieve pressure on energy supply during the war with Iran, Treasury Secretary Scott Bessent said last month. The waiver is set to expire on April 19.
The US did not renew the waiver on Russian oil at sea, which expired on Saturday, the sources said. The moves signal an end to the Trump administration's controversial efforts to use the sanctions waivers to free up more oil supplies and lower global energy prices that have spiked since the start of the US and Israeli war against Iran.
US lawmakers from both political parties had slammed the administration, saying the sanctions waivers stood to help the economies of Iran, while it was at war with the US, and of Russia, as it was at war with Ukraine.
Still, Washington has a range of penalties it can apply to institutions involved in illicit activities with Iran such as buying its oil, including secondary sanctions, one of the sources said.
"In addition, with the snapback of UN sanctions on Iran, and its history of trying to hide behind seemingly legitimate activity to conduct its illicit conduct, any activity with Tehran could trigger additional sanctions," the person said.
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