US Treasury Secretary Scott Bessent on Friday signaled that there are no plans to renew a temporary sanctions waver that permitted purchases of Russian oil and gas currently at sea.
After Iran effectively blocked 20 percent of global oil supply from transiting the Strait of Hormuz following US and Israeli attacks, Washington issued a waiver for Russian petroleum products in March to stabilize global energy prices after oil prices surged. The US also issued one-time waiver for Iranian oil at sea to relieve energy markets, dw.com reports.
The waiver on Russian oil was extended earlier this week. Bessent told the Associated Press on Friday, that the extension came after “more than 10 of the most vulnerable and poorest countries” asked for “help.”
“It was for those vulnerable and poor countries. But I wouldn’t imagine that we’d have another extension. I think the Russian oil on the water has been largely sucked up.”
Bessent added that there would be no extension of the waiver on Iranian supplies as the US continues to enforce a naval embargo.
“We have the blockade, and there’s no oil coming out,” he said.
“And we think in the next two, three days, they’re going to have to start shuttering production, which will be very bad for their wells.”
