US Ends ‘Oil Truce’: No More Waivers for Russia, Iran

The U.S. Department of the Treasury has moved to tighten pressure on Moscow and Tehran, announcing it will not renew temporary sanctions waivers that had allowed limited oil sales from both countries.

U.S. Treasury Secretary Scott Bessent said Wednesday that Washington will not extend the general license covering Russian oil already at sea, effectively closing a short-lived window that had eased restrictions on shipments caught in transit.

“We will not renew the general license related to Russian oil,” Bessent stated, a day after the Treasury confirmed a similar decision regarding Iranian crude.

The waivers were initially introduced to soften global supply shocks triggered by escalating conflict in the Middle East, particularly the war involving Iran and its regional implications.

As tensions surged, Iran responded by effectively shutting down the Strait of Hormuz, a critical artery for global energy flows, sending oil prices sharply higher and straining import-dependent economies. Fuel prices in the United States also climbed in tandem.

According to Bessent, the Russian oil covered under the waiver, cargoes loaded before March 12, has now been fully absorbed by the market.

The policy shift marks a return to Washington’s “maximum pressure” stance:

A March authorization had temporarily allowed the sale of Russian crude loaded before March 12 through April 11

A similar exemption for Iranian oil, covering cargoes loaded before March 20, was set to run until April 19

Both measures were designed as short-term relief mechanisms, not long-term policy changes.

Now, with those windows closing, the Treasury has made clear it is doubling down on sanctions, particularly against Iran, as regional conflict persists.

The end of these waivers could tighten global oil supply once again, especially if geopolitical disruptions continue. With key export routes like the Strait of Hormuz under threat, markets may face renewed volatility in the weeks ahead.

The decision signals that, for now, geopolitics, not just supply and demand, remains firmly in control of the oil market narrative.