The US has decided to completely phase out sanctions waivers that previously allowed limited shipments of Russian and Iranian oil to reach global markets.
US Treasury Secretary Scott Bessent announced on Friday, April 24, that the administration has no plans to renew General License 134B or any similar exemptions, Associated Press reported.
Bessent emphasized that a renewal for Iranian oil currently at sea is “totally off the table,” noting that the ongoing naval blockade has effectively halted exports. He predicted that within the next two to three days, Iran will be forced to start shuttering production, a move that could cause long-term damage to its oil wells.
The decision marks a reversal from the Treasury’s move last week, when it issued a 30-day extension to stabilize energy prices following appeals from more than 10 of the world’s poorest and most energy-vulnerable nations. While the waiver was intended to cool a market where crude prices surged above $100 per barrel, it drew sharp criticism from Kyiv and US lawmakers.
President Volodymyr Zelensky has been a vocal critic of such relief, arguing that every dollar from Russian oil exports directly funds Moscow’s “murderous war machine.” On April 19, Zelensky warned that over 110 tankers from Russia’s shadow fleet, carrying oil valued at approximately $10 billion, were able to be sold without consequences due to these exemptions. He noted that such funds are converted into thousands of drones and missiles used against Ukrainian territory.
With the Strait of Hormuz effectively closed and the US-Israeli campaign against Iran continuing, Bessent stated that the Russian oil previously at sea has been “largely sucked up,” making further extensions unnecessary.
The administration’s shift back to a “zero-waiver” policy signals a return to maximum economic pressure on both Moscow and Tehran as the November midterm elections approach.