The U.S. Treasury Department has confirmed that it will not renew the 30‑day waiver permitting the delivery, sale, and offloading of Iranian oil and petroleum products.
The short‑term authorization, which allowed sanctioned oil already stranded at sea to be sold, is set to expire in the coming days.
“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,” the Treasury said in a statement on Tuesday, April 14.
The department described the move as part of its “Economic Fury” campaign, aimed at maintaining maximum pressure on Tehran.
Temporary waiver on Iranian oil
The waiver was first announced on March 20 by Treasury Secretary Scott Bessent. At the time, he said the authorization applied only to oil already in transit, not to new orders.
Bessent noted that sanctioned Iranian oil was being hoarded by China “on the cheap at present.” He added that the United States would quickly bring approximately 140 million barrels of Iranian oil to global markets by temporarily unlocking this existing supply, “expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran.”
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The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Iran‑related General License U, authorizing the delivery and sale of crude oil and petroleum products of Iranian origin loaded on vessels as of March 20, 2026.
Bessent said the United States would use the Iranian barrels against Tehran to keep prices down as the Operation Epic Fury military campaign continued.
“This temporary, short‑term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” he said.
“Further, Iran will have difficulty accessing any revenue generated, and the United States will continue to maintain maximum pressure on Iran and its ability to access the international financial system.”
Hours after the United States announced the waiver back in March, Iran rejected the U.S. position. Oil Ministry spokesman Saman Ghoddoosi said Tehran had no surplus crude available for export.
“Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets,” Ghoddoosi said, adding that the U.S. position was “solely aimed at giving hope to buyers.”
The move by Bessent to lift sanctions on roughly 140 million barrels of Iranian oil mirrored a similar step taken by the Trump administration, which allowed the sale of Russian oil cargoes stranded at sea under a temporary 30‑day waiver.
U.S. imposes military blockade of Iranian ports on Strait of Hormuz
The expiration of the waiver comes as tensions escalate in the Gulf. On April 14, ship tracking data showed Iranian vessels leaving port in apparent defiance of a U.S. naval blockade.
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The cargo ship Ashkan3 departed Chabahar port unladen and sailed east toward Pakistan. Another vessel, the container ship Shabdis, also left Chabahar port unladen and is now near India, transmitting Zhuhai in China as its destination.
Both ships sailed under the Iranian flag and avoided crossing the Strait of Hormuz after the blockade began. Other vessels changed direction after initially crossing the strait.
The tanker Rich Starry, reporting it was carrying cargo, sailed east from Sharjah in the UAE but later reversed course. The bulk carrier Christianna, which had called at Iran’s Bandar Imam Khomeini, also turned back.
Another tanker, the Elpis, passed the strait heading east on Tuesday and is now stationary east of the strait. Analysts said some ships may have been broadcasting false position reports, known as “spoofing,” to disguise their locations.
U.S. Central Command (CENTCOM) on Tuesday said six merchant vessels complied with orders to re‑enter Iranian ports and reported that no ships passed the blockade in its first 24 hours.
More than 10,000 military personnel, along with dozens of warships and aircraft, are involved in enforcing the blockade. Centcom said the blockade is being enforced against vessels of all nations entering or leaving Iranian ports, while maintaining freedom of navigation for those not traveling to or from Iran.
Talks between the United States and Iran have stalled. Over the weekend, U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf met in Islamabad with Pakistani mediators, but no agreement was reached between Washington and Tehran.
President Donald Trump told the New York Post that negotiations could resume “in the next two days,” though Iranian state media said there was “no information” about any agreement to hold further talks.
Why it matters
Oil markets have reacted to the developments. Brent crude prices fell 4.5 percent to $94.87 a barrel on Tuesday before recovering slightly.
The blockade of Iran’s ports and the partial blockade of the Strait of Hormuz, a key chokepoint for global shipments, have raised concerns about supply disruptions.
Iran has warned it will retaliate if the blockade continues, calling it illegal and describing it as piracy. Tehran said no Gulf ports would be safe if traffic to and from its own ports is impeded.
