Washington: The United States has announced it will not renew temporary sanctions waivers that had allowed certain purchases of Russian and Iranian oil without triggering US penalties, Treasury Secretary Scott Bessent confirmed at a White House briefing on Wednesday.
The move effectively signals an end to Washington’s short‑term strategy of using targeted exemptions to ease global energy‑supply pressures amid heightened tensions in Europe and the Middle East, agencies reported.
“We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used,” Bessent told reporters.
The waivers had been issued by the Treasury Department’s Office of Foreign Assets Control (OFAC) in March, as Iran’s restrictions on the Strait of Hormuz tightened global energy supply and pushed crude prices higher.
The Iranian waiver, issued on March 20, allowed approximately 140 million barrels of oil already loaded onto tankers to reach global markets, helping to relieve pressure on energy supply during the ongoing war‑linked disruptions, Bessent said last month. That waiver is set to expire on April 19 and will not be extended.
On March 5, the US had issued a 30‑day sanctions waiver to India, permitting it to purchase Russian oil despite sanctions imposed over the Ukraine war. A few days later, the waiver was extended to a few other nations, giving key buyers a brief window to legally import discounted Russian crude that had already left Russian ports or was transiting sensitive waters. That waiver expired on April 11 and will not be renewed, leaving future Russian and Iranian shipments once again exposed to the full force of US secondary sanctions.
With both licenses now set to expire without renewal, the Trump administration has wound down its efforts to use sanctions waivers as a tool to free up oil supplies and lower soaring global energy prices.
Policy Shift And Regional Implications
The decision to let the waivers lapse marks a notable tightening of Washington’s sanctions posture just as global markets are navigating a series of overlapping shocks.
The Russian‑oil waiver, which provided a narrow window for shipments already at sea before March 11, had allowed India and a handful of other buyers to secure discounted crude with reduced sanctions risk. With the waiver gone, further purchases of Russian crude will again expose counterparties to potential US financial and shipping sanctions, raising the bar for insurance, financing, and logistics.
