US Says Waivers On Iranian, Russian Oil Won't Be Renewed: ‘They’ll Have To Shutter Production’

Last Updated:April 25, 2026, 08:04 IST

United States had initially introduced a waiver in March to allow some Russian oil sales and petroleum products to continue amid volatile market.

The United States has said it will not continue sanctions waivers that allowed limited trade in Iranian and Russian oil, according to Treasury Secretary Scott Bessent. His remarks come as tensions remain high during the ongoing West Asia conflict involving Iran and as global energy markets react to the closure of the Strait of Hormuz.

No extension for Iranian, Russian oil

In an interview with the Associated Press, Bessent said the exemptions that had earlier permitted restricted oil purchases would not be renewed. He made it clear that a waiver allowing the purchase of Russian oil shipments already at sea would also not continue.

On Iran, his position was firmer. “Not the Iranians," he said, adding that the US naval blockade meant “there’s no oil coming out." He also warned that Iran may soon be forced to reduce production. “In the next two, three days, they’re going to have to start shuttering production, which will be very bad for their wells," he said.

Waivers introduced to stabilise markets

The United States had initially introduced a waiver in March to allow some Russian oil sales and petroleum products to continue. The aim was to stabilise global energy markets after crude prices crossed $100 per barrel.

However, Bessent’s latest comments indicate a shift in approach. He explained his earlier change of position and ruled out any fresh waivers for both Russia and Iran, even as market pressures continue.

Sanctions on China

The move comes alongside a crackdown on maritime operations linked to Iran. The US Treasury Department has imposed sanctions on around 40 shipping firms and vessels, as well as a Chinese oil refinery.

Officials said many of the targeted ships were linked to Chinese operations or had transported crude oil to China. These vessels were described as key parts of a network supporting Iran’s oil exports.

The action follows the recent seizure of the vessel Touska, which had been heading towards Iran. The ship had previously stopped at a Chinese port associated with chemicals that could be used as rocket fuel components.

US Intensifies pressure on Iran

The Treasury Department said the latest sanctions are part of a broader effort to cut off Iran’s main sources of income. It described oil exports as a primary revenue stream that funds what it called destabilising activities in the region.

“The United States is taking decisive action to disrupt Iran’s illicit oil trade," the department said in a statement. It added that the measures are aimed at limiting Tehran’s ability to support proxy forces and threaten regional stability.

The statement also highlighted that the sanctions target “critical lifelines" of Iran’s oil exports, including vessels and their operators.

Bessent’s comments come at a time when the world remains on edge over the US-Israeli war in Iran. The closure of the Strait of Hormuz has added to the uncertainty, affecting global oil supply and pushing up energy prices.

The US has maintained a naval blockade as part of its strategy, increasing economic pressure on Iran while negotiations remain uncertain.

Pressure on Iran economy

According to US officials, the tightening sanctions and blockade are designed to weaken Iran’s ability to sustain its economy during the conflict. By targeting oil exports, Washington aims to limit revenue flows that support the government.

The administration has said it will continue to intensify economic pressure as part of its broader strategy, described as “Economic Fury".

At the same time, officials say the measures are intended to ensure that Iran cannot use oil income to expand its military capabilities or influence in the region.

With waivers now ruled out and sanctions expanding, the US appears to be increasing pressure on Iran through economic means while the conflict continues.

News world US Says Waivers On Iranian, Russian Oil Won't Be Renewed: ‘They’ll Have To Shutter Production’

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