The Trump administration will allow a temporary waiver permitting the purchase of certain Iranian crude oil to expire this weekend, signaling a continuation of its pressure campaign on Tehran.
In a social media post on Tuesday, the US Treasury Department said, “The short-term authorization permitting the sale of Iranian oil already stranded at sea is set to expire in a few days and will not be renewed,” adding that it plans to use other available tools to sustain pressure on Iran.
The department also warned financial institutions of further action, stating, “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.”
Also Read | Saudi Arabia Is Pressing US to Drop Its Hormuz Blockade
Why the decision?
The decision comes as the United States enforces a blockade on traffic through the Strait of Hormuz following peace talks last weekend that failed to produce a breakthrough.
The waiver, originally issued on March 20, is set to expire on Sunday and applied only to Iranian oil and petrochemical products that had already been loaded onto tankers.
The administration had previously allowed a similar waiver, covering purchases of certain sanctioned Russian crude, to lapse.
More on the US-Iran war
The ongoing US and Israeli conflict with Iran has triggered a global energy shock, prompting the administration to explore ways to ease prices. However, President Donald Trump’s administration has faced criticism for easing sanctions on oil from Iran and Russia during conflicts in both the Middle East and Ukraine.
Reinforcing its stance, the Treasury Department said, “Treasury is moving aggressively with Economic Fury, maintaining maximum pressure on Iran.”
Energy Secretary Chris Wright also suggested additional measures could follow. Speaking on Fox News, he said the blockade is one method “to bring this conflict to an end,” but added that “there could be other sources of economic pressure as well.”
