U.S. Treasury Secretary Scott Bessent said Friday that Washington has no plans to renew exemptions allowing the purchase of Russian oil currently held at sea, while firmly rejecting any extension of a similar waiver for Iranian oil shipments.
In an interview with Associated Press, Bessent stated that renewing the one-time exemption for Iranian oil “is completely off the table.”
“For the Iranians, it’s a no, we are enforcing a blockade, and no oil supplies are leaving there,” he said. “We believe that within the next three days, they will have to begin shutting down production, which would be very damaging to their wells.”
The remarks come as global markets closely monitor the fallout from escalating tensions involving the United States, Israel, and Iran, alongside severe disruptions in energy flows following the closure of the Strait of Hormuz.
The United States had initially introduced a temporary exemption in March to allow transactions involving Russian oil and petroleum products already at sea, aiming to stabilize global energy markets after crude prices surged past $100 per barrel.
Despite previously extending the waiver shortly after signaling it would not do so, Bessent indicated that no further renewals should be expected for either Russia or Iran.
Explaining the earlier extension, he said the decision followed appeals during meetings of the World Bank and the International Monetary Fund.
“Representatives from more than 10 of the poorest and most vulnerable countries approached me asking for help,” Bessent noted. “That extension was for those weaker economies. But I don’t see another one happening.”
He added that most of the Russian oil previously stranded at sea has now been absorbed into global markets, reducing the need for further policy flexibility.
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