2 min readUpdated: Apr 16, 2026 11:38 AM IST

US Treasury Secretary Scott Bessent said that the United States (US) will not renew ​the waivers that allowed buying of Iranian and ‌Russian oil without facing US sanctions, Reuters reported Wednesday

On Tuesday it was reported that the US would not renew a 30-day waiver of ​sanctions on Iranian oil at sea that scheduled to expire this week, and let a similar waiver ​on Russian oil sanctions expire over the weekend.

Bessent warned that the US is gearing up to ratchet economic pain on Iran by levying secondary sanctions on financial institutions that are engaged in business with the Middle Eastern nation.

The US-Israel war against Iran has resulted in the largest-ever disruption of ⁠energy supplies due to Iran’s interruption of traffic through the strait, which provides a passage for 20% of the world’s oil ⁠and liquefied natural ‌gas shipments.

The US ​imposed a blockade at Iranian ports that its military said has completely halted trade going in and out ​of the country by sea.

Meanwhile, the global markets turned optimistic Thursday over a probability of Iran allowing ships to transit through the Strait of Hormuz. Oil prices dropped in early trade as hopes of de-escalation US-Iran tensions cooled down concerns over ongoing supply disruptions. Brent crude futures slipped 44 cents, or 0.5%, to $94.49 a barrel at 0021 GMT. US West Texas Intermediate crude futures fell 70 cents, or 0.8%, at $90.59 a barrel.

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