The United States has decided not to extend a temporary sanctions relief that had allowed limited transactions involving Russian and Iranian oil, Treasury Secretary Scott Bessent said, signalling a return to stricter curbs amid rising geopolitical tensions.
The move comes at a time when Washington is sharpening its economic strategy against Tehran, particularly targeting the energy sector, even as instability in West Asia continues to disrupt supply chains and strain global markets.
“We will not be renewing the general license on Russian oil and Iranian oil. That was oil that was on the water prior to March 11th. All that has been used,” Bessent said during a media briefing.
Fresh sanctions target Iran-linked oil transport network
Alongside the decision on the licence, the US Treasury’s Office of Foreign Assets Control has announced a new round of sanctions aimed at what it described as Iran’s “illicit oil transportation infrastructure”. The action targets around two dozen individuals, companies and vessels, according to a report by Al Jazeera.
The Treasury said these entities are part of a network associated with Mohammad Hossein Shamkhani, identified as the son of a senior adviser to Iran’s former Supreme Leader Ali Khamenei.
Bessent reiterated that the administration would continue to disrupt such operations. As quoted by Al Jazeera, he said Washington would keep working to “cut off Iran’s illicit smuggling and terror proxy networks.”
Temporary relief window set to close
The earlier relaxation, introduced in March, had allowed transactions involving Iranian-origin crude oil and petroleum products that were already loaded onto vessels before the cut-off date. The measure was aimed at easing short-term supply concerns.
According to the Treasury Department, this limited authorisation will expire within days and will not be extended. The validity period, which began with the March 21 announcement, was set to run until April 19, 2026.
The department also underlined that it is “moving aggressively with Economic Fury, maintaining maximum pressure on Iran,” while cautioning global financial institutions against supporting Tehran’s activities.
“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 statement said.
With the licence ending, the US is reverting fully to its “maximum pressure” approach, tightening restrictions on Iranian oil flows. The broader backdrop remains tense, with ongoing conflict affecting key maritime routes and adding pressure on global energy supplies and diplomatic engagement.