USA resumes sanctions on Russian and Iranian oil

The temporary sanction relief in both cases lasted less than a month. US Treasury Secretary Scott Bessent stated on April 15 that the waiver would not be renewed. In Russia’s case, the exemption expired on April 11 and sanctions on Iranian oil will be reinstated as of April 19. The shipments of crude exempted from sanctions are reported to have already been sold.

The exemption granted to both countries from US sanctions was the Trump administration’s response to the energy crisis triggered by the blockade of the Strait of Hormuz. The US Treasury expects that both crude oil and gasoline prices at the pump should return to normal levels soon. Between July and September, gasoline prices are projected to return to pre-war levels with Iran.

The reinstatement of sanctions is not the only non-military measure directed against Iran. During a White House briefing, Bessent announced that the United States had reached out to its allies in the Persian Gulf region, urging them to freeze the bank accounts of Iranian government officials and commanders of the Islamic Revolutionary Guard Corps (IRGC). On that occasion, the Treasury Secretary also warned of potential restrictions against Chinese banks. The US side has sent two letters to banks suspected of conducting transactions with Iran.