Russian oil waiver not renewed, US rules out Iran oil waiver as Strait of Hormuz tensions rise

US Treasury Secretary Scott Bessent said on Friday that Washington did not plan to extend a waiver. The waiver allowed buyers to purchase Russian oil and petroleum products already at sea. Bessent also said any repeat waiver for Iranian oil at sea was not being considered. The comments came during heightened tension affecting global energy supply routes.

Representative image

Bessent linked the decision to the conflict involving the US and Israel in Iran. Global markets remained tense as the Strait of Hormuz stayed closed. The shutdown has tightened shipping lanes for crude and fuel. Investors and governments watched price risks closely as uncertainty spread across energy trade flows.

Russian oil waiver and US energy markets

The US first issued the Russian waiver in March after crude prices jumped above USD 100 per barrel. Officials said the measure aimed to steady global energy markets. Later, the Treasury Department renewed the waiver. That renewal came two days after Bessent said at the White House that no extension was planned.

In an Associated Press interview, Bessent explained the earlier shift and outlined a firmer stance now. Bessent said, "More than 10 of the most vulnerable and poorest countries came to me and said, Can you help?\" Bessent said the waiver aimed to protect those economies. Bessent added, \"But I wouldnt imagine that wed have another extension.\"

Bessent also said the Russian supply covered by the waiver was mostly absorbed already. Bessent said, \"I think the Russian oil on the water has been largely sucked up.\" The remark suggested less need for continued relief. It also signalled a tighter US approach as market conditions changed.

Iranian oil waiver and Strait of Hormuz disruption

On Iran, Bessent ruled out any similar relief for oil shipments at sea. Bessent said, \"Not the Iranians,\" and added, \"We have the blockade, and theres no oil coming out.\" Bessent said the impact could arrive fast. Bessent said, \"And we think in the next two, three days, theyre going to have to start shuttering production, which will be very bad for their wells.\"

Bessent’s remarks came as governments tracked the combined effects of conflict and shipping disruption. The Strait of Hormuz closure added pressure to supply planning. For now, Bessent indicated the US position was set against further sanctions waivers. The focus remained on limiting Iranian exports and ending the temporary allowance tied to Russian oil at sea.

With inputs from PTI