No reprieve: US ends Iran oil waiver, ramps up pressure in Hormuz standoff
The US will not extend a waiver allowing Iranian oil sales past April 19, warning banks of sanctions as it intensifies pressure on Tehran amid rising tensions and a Hormuz blockade.
With days to go before a key deadline, the US has signalled there will be no reprieve for Iranian oil — and no easing of pressure. The Trump administration said it will not extend permission for the sale of Iranian oil beyond April 19, making clear that a temporary waiver allowing shipments already at sea will expire as scheduled, according to a statement from the US Treasury Department.
In a post on X, the department said the short-term authorisation “is set to expire in a few days and will not be renewed,” reinforcing Washington’s push to tighten restrictions on Tehran’s energy exports.
The move comes as the administration ramps up what it called “Economic Fury,” a renewed phase of its maximum pressure campaign against Iran.
“Treasury is moving aggressively with Economic Fury, maintaining maximum pressure on Iran,” the department said, warning that financial institutions supporting Iranian activities could face penalties.
The Treasury also issued a direct warning to global financial institutions, signalling tougher enforcement ahead.
“Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities,” it said, adding it was prepared to impose secondary sanctions on foreign banks continuing to facilitate Iranian transactions.
The waiver, first announced in March, had allowed the sale of Iranian oil and petrochemical products already loaded onto tankers — estimated at around 140 million barrels — to ease global supply pressures during the conflict.
PRESSURE BUILDS AMID HORMUZ TENSIONS
The decision comes against the backdrop of heightened tensions in the region, with the US imposing a blockade on Iranian-linked traffic through the Strait of Hormuz following the collapse of ceasefire talks.
The expiry of the waiver is expected to further squeeze Iran’s oil exports at a time when global energy markets remain volatile.
Washington has already taken a similar step with Russian crude, allowing a temporary waiver to lapse without renewal — a sign of a broader tightening of sanctions policy.
NO EASING IN SIGHT
The decision to let the Iran oil waiver lapse comes after sharp criticism from lawmakers in Washington, who had questioned the policy even before its expiry.
According to Reuters, US lawmakers from both parties had slammed the administration, arguing the waivers risked boosting the economies of adversaries during active conflicts.
Lawmakers said the exemptions “stood to help the economies of Iran, while it was at war with the US, and of Russia as it was at war with Ukraine,” highlighting bipartisan unease over the policy.
The waivers had been part of a broader effort by the administration to ease global oil supply pressures and stabilise prices following the escalation of the US and Israeli war with Iran. But critics said the approach risked undercutting the very sanctions regime designed to isolate Tehran and Moscow.
Even with the waiver ending, officials made clear that enforcement tools remain in place. Washington can still impose penalties on institutions involved in Iranian oil trade, including secondary sanctions targeting foreign banks and intermediaries.
“In addition, with the snapback of UN sanctions on Iran any activity with Tehran could trigger additional sanctions,” a source familiar with the matter said, pointing to the risks for global financial institutions.
US WIDENS PRESSURE NET
The Treasury Department has also stepped up pressure on countries accused of facilitating Iranian financial flows. Letters have been sent to authorities in China, Hong Kong, the UAE and Oman, identifying banks allegedly involved in moving Iranian funds.
US officials say Iran routed at least $9 billion through US correspondent accounts in 2024 using front companies, raising concerns over sanctions evasion networks.
Treasury Secretary Scott Bessent urged swift action. “My hope is for your swift action to identify and stop any illicit activity linked to Iran to avoid further action,” he said in a letter seen by Reuters.
Bessent also underscored the impact of the US blockade in the Strait of Hormuz, saying it would prevent Iranian oil from reaching key buyers. “They’re not going to be able to get their oil Not Iranian oil,” he said, noting China had been purchasing the vast majority of Tehran’s exports.
With days to go before a key deadline, the US has signalled there will be no reprieve for Iranian oil — and no easing of pressure. The Trump administration said it will not extend permission for the sale of Iranian oil beyond April 19, making clear that a temporary waiver allowing shipments already at sea will expire as scheduled, according to a statement from the US Treasury Department.
In a post on X, the department said the short-term authorisation “is set to expire in a few days and will not be renewed,” reinforcing Washington’s push to tighten restrictions on Tehran’s energy exports.
The move comes as the administration ramps up what it called “Economic Fury,” a renewed phase of its maximum pressure campaign against Iran.
“Treasury is moving aggressively with Economic Fury, maintaining maximum pressure on Iran,” the department said, warning that financial institutions supporting Iranian activities could face penalties.
The Treasury also issued a direct warning to global financial institutions, signalling tougher enforcement ahead.
“Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities,” it said, adding it was prepared to impose secondary sanctions on foreign banks continuing to facilitate Iranian transactions.
The waiver, first announced in March, had allowed the sale of Iranian oil and petrochemical products already loaded onto tankers — estimated at around 140 million barrels — to ease global supply pressures during the conflict.
PRESSURE BUILDS AMID HORMUZ TENSIONS
The decision comes against the backdrop of heightened tensions in the region, with the US imposing a blockade on Iranian-linked traffic through the Strait of Hormuz following the collapse of ceasefire talks.
The expiry of the waiver is expected to further squeeze Iran’s oil exports at a time when global energy markets remain volatile.
Washington has already taken a similar step with Russian crude, allowing a temporary waiver to lapse without renewal — a sign of a broader tightening of sanctions policy.
NO EASING IN SIGHT
The decision to let the Iran oil waiver lapse comes after sharp criticism from lawmakers in Washington, who had questioned the policy even before its expiry.
According to Reuters, US lawmakers from both parties had slammed the administration, arguing the waivers risked boosting the economies of adversaries during active conflicts.
Lawmakers said the exemptions “stood to help the economies of Iran, while it was at war with the US, and of Russia as it was at war with Ukraine,” highlighting bipartisan unease over the policy.
The waivers had been part of a broader effort by the administration to ease global oil supply pressures and stabilise prices following the escalation of the US and Israeli war with Iran. But critics said the approach risked undercutting the very sanctions regime designed to isolate Tehran and Moscow.
Even with the waiver ending, officials made clear that enforcement tools remain in place. Washington can still impose penalties on institutions involved in Iranian oil trade, including secondary sanctions targeting foreign banks and intermediaries.
“In addition, with the snapback of UN sanctions on Iran any activity with Tehran could trigger additional sanctions,” a source familiar with the matter said, pointing to the risks for global financial institutions.
US WIDENS PRESSURE NET
The Treasury Department has also stepped up pressure on countries accused of facilitating Iranian financial flows. Letters have been sent to authorities in China, Hong Kong, the UAE and Oman, identifying banks allegedly involved in moving Iranian funds.
US officials say Iran routed at least $9 billion through US correspondent accounts in 2024 using front companies, raising concerns over sanctions evasion networks.
Treasury Secretary Scott Bessent urged swift action. “My hope is for your swift action to identify and stop any illicit activity linked to Iran to avoid further action,” he said in a letter seen by Reuters.
Bessent also underscored the impact of the US blockade in the Strait of Hormuz, saying it would prevent Iranian oil from reaching key buyers. “They’re not going to be able to get their oil Not Iranian oil,” he said, noting China had been purchasing the vast majority of Tehran’s exports.
