US Ends Oil Sanctions Waivers on Iran and Russia as Pressure Campaign Intensifies

The United States has decided not to renew a key sanctions waiver on Iranian oil shipments and has also allowed a similar exemption on Russian oil to lapse, in a move that signals a tougher stance on energy flows linked to both countries.

According to administration officials, the waiver covering Iranian oil transported at sea will expire this week without extension. A comparable waiver for Russian oil shipments quietly ended over the weekend. The decision comes as Washington enforces a blockade on cargoes linked to Iran, tightening restrictions on exports from its ports.

Officials described the move as part of an intensified economic campaign aimed at increasing pressure on Tehran. The policy builds on longstanding efforts by the administration of Donald Trump to curb Iran’s oil revenues over concerns related to its nuclear programme and regional activities.

The waiver, first issued in March by the Treasury Department, had allowed roughly 140 million barrels of oil to reach global markets. It was introduced to ease supply pressures at a time when the conflict involving the US, Israel and Iran disrupted energy flows and pushed prices higher. Treasury Secretary Scott Bessent had previously said the measure was intended to stabilise markets during a period of heightened volatility.

With the waivers now ending, the United States appears to be shifting away from attempts to balance sanctions with efforts to manage global oil prices. Lawmakers from both parties had criticised the exemptions, arguing they risked supporting the economies of Iran and Russia during ongoing conflicts.

Washington has also stepped up warnings to international financial centres. Treasury officials have contacted authorities in China, the Hong Kong, the United Arab Emirates and Oman, highlighting concerns about banks allegedly facilitating transactions linked to Iranian oil revenues.

Officials said Iran had processed billions of dollars through international financial channels using front companies, prompting calls for stricter oversight. The Treasury warned that institutions failing to act could face further penalties, including secondary sanctions.

Bessent also indicated that the blockade of the Strait of Hormuz would be enforced to prevent Iranian oil from reaching key buyers. He noted that China, which has been the largest purchaser of Iranian crude, would need to source supplies elsewhere under the new restrictions.

The developments mark a significant escalation in economic measures tied to the broader geopolitical conflict. Analysts say the tightening of sanctions could further strain global energy markets, particularly if alternative supplies fail to offset reduced Iranian exports.

As tensions persist, the impact of these decisions is likely to be closely watched by both policymakers and energy traders worldwide.