The US Treasury Department announced it will not renew a 30-day sanctions waiver that had allowed approximately 140 million barrels of Iranian oil already at sea to continue shipping, branding the intensified campaign “Operation Economic Fury.”
The waiver, set to expire on April 19, had exempted Iranian oil cargoes already in transit when the US military blockade of Iranian ports began on April 13. Its expiration means those cargoes now face full sanctions exposure.
“Treasury is moving aggressively with Economic Fury, maintaining maximum pressure on Iran,” the department said in a statement, referencing Operation Epic Fury — the ongoing US military campaign in the Middle East.
Treasury Secretary Scott Bessent sent letters to financial regulators in China, Hong Kong, the United Arab Emirates and Oman, warning that institutions facilitating Iran’s transactions face secondary sanctions.
“Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities,” the Treasury said, adding that Iran had processed at least $9 billion through US correspondent accounts in 2024 using front companies.
The US also confirmed it will not renew a separate waiver on Russian oil at sea, which expired on Saturday, Trump administration sources told Reuters.
President Trump told ABC the situation “could end either way” but said a deal remained preferable, with the two-week ceasefire set to expire on April 21.
For Sri Lanka, the move removes a potential relief valve. With the port blockade already pushing oil above $100 per barrel, the loss of stranded Iranian cargoes from global supply will further elevate fuel import costs and pressure on CBSL foreign reserves.
