The US government has made it clear that it will no longer renew the sanction waivers for Iranian and Russian oil. Treasury Secretary Scott Basset announced at a press conference on Wednesday, “We will not be renewing the general licenses for Russian and Iranian oil.” He pointed out, “These oils were already in transit before March 11, so all of this has been utilized.”
This decision marks the end of the Trump administration's efforts to release oil supplies amid soaring energy prices. According to Reuters, oil prices had briefly exceeded the benchmark Brent crude price of $100 per barrel after the US and Israel launched a joint strike against Iran at the end of February, but have since fallen below that level, despite statements about continuing peace negotiations failing to reach an agreement over the weekend.
Basset mentioned that the waivers pertain to oil that is already in transit, which can quickly reach global markets, thereby increasing supply to alleviate price pressures.
Additionally, the US has threatened to impose sanctions on countries purchasing Iranian oil and expressed confidence that China would stop its purchases. Basset revealed, “We have informed countries that if you purchase Iranian oil, if Iranian money is held in your banks, we are now willing to impose secondary sanctions.”
This warning comes as the US is implementing a maritime blockade against Iran, marking the seventh blockade since the war began. Basset stated, “We believe that with the implementation of this blockade, China’s purchases will pause.” At one point, China purchased over 80% of Iranian oil.
The US Treasury has already informed two Chinese banks about the consequences of handling Iranian funds and has contacted financial institutions in Hong Kong, the UAE, and Oman to identify those allowing Iranian activities.
In addition to the current maritime blockade, the US has also imposed sanctions on over twenty individuals, companies, and vessels involved in transporting Iranian oil. These measures are part of the US's pressure campaign against Tehran, aimed at addressing its nuclear program and support for radical organizations in the region.