US ends sanctions waiver for Russian, Iranian Oil; India among affected buyers

The United States has announced it will not renew the sanctions waivers that had temporarily permitted purchases of Russian and Iranian oil without triggering US penalties, Treasury Secretary Scott Bessent confirmed at a White House briefing on Wednesday.

"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.



Also Read: Putin to attend BRICS Summit in India, Kremlin confirms second visit in a year

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, had allowed approximately 140 million barrels of oil to reach global markets, helping relieve pressure on energy supply during the war, Bessent said last month. That waiver is set to expire on April 19.

On March 5, the US had issued a 30-day sanctions waiver to India, permitting it to buy Russian oil despite sanctions imposed over the Ukraine war. A few days later, the waiver was extended to a few other nations. That waiver expired on April 11.

Also Read: 'Your ships will be sunk by our first missiles': Iran warns US over Strait of Hormuz

With both licenses now set to expire without renewal, the Trump administration has wound down its efforts to use sanctions waivers to free up oil supplies and lower soaring global energy prices.


With inputs from PTI