US Tightens Oil Sanctions on Iran, Ends Waivers to Escalate Pressure
Washington— The United States will not renew a sanctions waiver on Iranian oil shipments set to expire this week, administration officials said on Tuesday, signaling a sharper escalation in economic pressure on Tehran amid the ongoing war and a broader effort to restrict its energy revenues.
The decision also follows the quiet expiration of a similar waiver covering Russian oil shipments over the weekend, according to two officials familiar with the matter. The moves coincide with a US-imposed blockade on Iranian port shipments and reflect a shift away from earlier efforts to stabilize global oil supply during the conflict.
US Treasury Secretary Scott Bessent had said last month that the 30-day waiver, issued on March 20, allowed roughly 140 million barrels of oil to reach global markets, helping to ease supply constraints and moderate energy prices following the outbreak of hostilities involving Iran.
The waiver is due to lapse on April 19.Officials said the decision underscores the administration of Donald Trump returning to a “maximum pressure” approach, aimed at curbing Iran’s oil revenues over concerns related to its nuclear program and regional activities. One official described the move as part of a broader push aligned with Washington’s military campaign against Iran.
The rollback of waivers marks the end of a controversial policy that had permitted limited sanctioned oil flows to global markets, including shipments that continued to reach major buyers such as China.
Lawmakers from both parties had criticized the exemptions, arguing they indirectly supported the economies of US adversaries during active conflicts.The Treasury Department has also increased pressure on financial institutions linked to Iranian transactions.
According to one official, letters were sent to authorities in China, Hong Kong, the United Arab Emirates and Oman, identifying banks alleged to have facilitated Iranian financial activity.In the correspondence, Bessent urged swift action to halt transactions tied to Iran, warning that continued involvement could trigger additional sanctions.
US officials have said Iran moved at least $9 billion through US correspondent banking channels in 2024 using networks of front companies operating in multiple jurisdictions.Washington retains a range of enforcement tools, including secondary sanctions targeting entities engaged in Iranian oil trade or related financial activities.
Officials also pointed to the potential reimposition of broader international penalties linked to Iran’s past sanctions record.
Bessent said earlier that the US naval blockade in the Strait of Hormuz would restrict the movement of Iranian oil exports, including shipments destined for China, which he described as the primary buyer of Iranian crude.
