The U.S. has reportedly chosen not to renew waivers on sanctions for Iranian and Russian oil amid a more stringent approach towards these countries.
The 30-day waiver on sanctions for Iranian oil currently at sea, set to lapse this week, will not be prolonged, Reuters reported on Tuesday. In addition, a similar waiver on Russian oil sanctions was discreetly allowed to expire over the weekend.
The Trump administration has been exerting “maximum pressure” on Iran due to its nuclear program and support for militants in the Middle East.
The Treasury’s March 20 waiver allowed roughly 140 million barrels of oil to reach global markets, helping ease energy supply pressures during the Iran conflict, according to Treasury Secretary Scott Bessent.
US Flags Banks Aiding Iran Flows
Separately, the U.S. Treasury, on Tuesday, reportedly stepped up pressure on governments hosting banks accused of channeling funds to Iran, sending letters to authorities in China, Hong Kong, the UAE, and Oman identifying institutions linked to illicit Iranian financial activity.
The letters followed Treasury findings that Iran moved at least $9 billion through U.S. correspondent accounts in 2024 using front companies, particularly in Hong Kong, the UAE, and other jurisdictions.
White House did not immediately respond to Benzinga‘s request for comments.
Oil Waivers Spark Backlash, Supply Fears
In March, the Trump administration issued a short-term waiver allowing countries to buy Russian oil already “stranded at sea” to ease supply pressures as prices surged past $100 per barrel. The narrowly targeted move aims to stabilize markets without broadly relaxing sanctions on Russia.
Lawmakers from both parties criticized the sanctions waivers, arguing they were benefiting the economies of Iran and Russia. However, sources told Reuters that the U.S. can impose stricter measures, including secondary sanctions on institutions engaging in illicit dealings with Iran.
The move to end the waivers comes amid a deepening global energy crunch, with the International Energy Agency warning that the full economic and market impact of the Iran war is only beginning to unfold. The IEA has estimated a loss of 12 million barrels per day of supply, more than the combined impact of the 1973 Arab oil embargo and the 1979 Iranian Revolution.
At 4:15 am ET, Brent crude oil was trading 0.23% lower at $94.57 per barrel.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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