New Delhi: The United States has decided not to renew a sanctions waiver that allowed limited transactions involving Russian and Iranian oil, a move that could affect countries, including India, that have continued to purchase discounted crude during ongoing supply disruptions.
US Treasury Secretary Scott Bessent confirmed the decision during a media briefing, saying the temporary relief granted earlier had now run its course.
“We will not be renewing the general license on Russian oil and Iranian oil. That was oil that was on the water prior to March 11. All that has been used,” he said.
The waiver had allowed the sale of crude that had already been loaded onto vessels before the cut-off date. With that stock now exhausted, Washington is returning to stricter enforcement of sanctions as part of its broader pressure campaign.
Fresh sanctions target Iranian oil network
Along with the decision, the US Treasury’s Office of Foreign Assets Control imposed new sanctions targeting what officials described as Iran’s oil transport network. The sanctions cover around two dozen individuals, companies and vessels linked to Iranian oil shipments.
According to reports from Al Jazeera, the sanctions target a network connected to Mohammad Hossein Shamkhani, identified as the son of a senior adviser to Iran’s former Supreme Leader Ali Khamenei.
Bessent said the Trump administration would continue tightening restrictions on Iranian oil flows.
The administration would continue to “cut off Iran’s illicit smuggling and terror proxy networks”, he said.
Temporary relief now ending
The temporary waiver was introduced in March to ease immediate supply concerns. It allowed transactions involving Iranian-origin crude and petroleum products that had already been loaded onto vessels before March 20.
Announced on March 21, the authorisation allowed such shipments to be completed until April 19, 2026. This included limited transactions and deliveries that were already underway.
The US Treasury Department made clear that this relief would not continue.
Indicating a return to stricter enforcement, the department said in a statement that it is “moving aggressively with Economic Fury, maintaining maximum pressure on Iran”.
Officials also warned international financial institutions that may still be handling Iranian transactions.
“Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities and is prepared to deploy secondary sanctions against foreign financial institutions that continue to support Iran’s activities,” the statement said.
Impact on international oil buyers
The decision comes at a time when several countries, including India, have depended on discounted Russian crude and occasional Iranian supply arrangements to manage energy costs. The end of the waiver could tighten supply options and increase scrutiny of energy transactions involving sanctioned countries.
The move also comes as tensions in the region continue, with shipping routes facing disruptions due to closure of the Strait of Hormuz and ongoing diplomatic efforts between Washington and Tehran.
With the licence set to expire within days, Washington is returning to its “maximum pressure” strategy with aim to restrict Iran’s oil exports and limit revenue flows.
As the conflict involving Iran continues, maritime traffic in important energy routes has also faced pressure, adding to concerns around international oil supply and pricing.
The US decision is another step in tightening restrictions on Russian and Iranian oil flows, with potential ripple effects for international energy markets and countries that depend on discounted crude imports.
