On Tuesday, the United States intensified its economic measures against Iran, officially ending a break on offshore oil sanctions. The U.S. also indicated readiness to penalize foreign banks involved in financing Iranian terrorism.
Following the commencement of the U.S. blockade of the Strait of Hormuz, the Treasury Department announced it would not renew a 30-day waiver concerning Iranian offshore oil sanctions, which is set to lapse this week.
“Treasury is actively pursuing Economic Fury while keeping maximum pressure on Iran,” the agency noted, alluding to Operation Epic Fury, a military initiative currently in effect in the Middle East.
“The authorization permitting the sale of Iranian crude oil currently at sea will end soon and won’t be renewed,” the department stated.
Previously, on March 20, the Ministry of Finance had allowed the continued transportation of around 140 million barrels of Iranian crude oil at sea to help mitigate rising fuel prices attributed to the ongoing conflict.
This exemption is set to expire on April 19. Additionally, a waiver for Russian offshore oil that expired on Saturday will also not be reinstated, according to a Trump administration official.
Lawmakers in the U.S. expressed concerns about both exemptions, claiming they provided essential economic support to the populations of Iran and Russia amid the war.
Alongside the termination of the exemption, the Treasury Department is also exerting pressure on national and local governments whose banks are accused of financing Iran.
“Financial institutions must understand that we are prepared to deploy all available tools to impose secondary sanctions against foreign banks that continue to back Iranian activities,” the ministry warned.
After pinpointing banks in countries connected to Iran, the Treasury Department issued warnings to nations including China, Hong Kong, the United Arab Emirates, and Oman.
“We expect prompt action to identify and halt any illegal dealings related to Iran to prevent further measures from the Treasury Department,” Treasury Secretary Scott Bessent remarked in the correspondence.
The ministry revealed last year that Iran had processed at least $9 billion in 2024 via front companies in Hong Kong, the UAE, and other regions, using U.S. correspondent accounts.
