Bessent says no plans to extend waivers allowing Iranian, Russian oil purchases

The United States will not renew waivers that allowed limited purchases of Iranian and Russian oil without triggering sanctions, US Treasury Secretary Scott Bessent said on Wednesday.

“We will not be renewing the general license on Russian oil, and we will not be renewing the general license on Iranian oil. That was oil that was on the water prior to March 11. So all that has been used,” Bessent said during a White House briefing.

Waiver expiry marks policy shift

The decision effectively ends a temporary measure introduced by the US Treasury Department to ease global oil supply constraints during the ongoing Middle East conflict.

The Iranian waiver, issued on March 20, had allowed approximately 140 million barrels of oil to enter global markets, helping to stabilise supply during a period of heightened disruption.

The waiver is set to expire on April 19.

The move indicates that the Trump administration is stepping back from earlier efforts to use sanctions flexibility as a tool to moderate energy prices, even as geopolitical tensions continue to impact supply chains.

Gasoline prices expected to ease

Despite tightening restrictions, Bessent said he expects US consumers to see some relief at the pump in the coming months.

He told reporters that he has been engaging with Middle Eastern counterparts to address the oil crisis and added that gasoline prices could fall into the $3 range this summer.

The outlook suggests that the administration anticipates improved supply conditions or stabilising demand, even as sanctions policy becomes more restrictive.

China criticised over oil stockpiling

On Tuesday, Bessent also shares his criticism of China’s role during the conflict, accusing Beijing of exacerbating global supply constraints.

He said China has acted as an “unreliable global partner” by stockpiling oil and restricting exports of certain goods, echoing concerns raised earlier this week.

The comments come amid broader tensions over resource allocation during the crisis, as countries navigate disruptions caused by the conflict and the closure of key shipping routes.

International organisations have also cautioned against policies that could worsen supply shortages.

The International Monetary Fund, World Bank, and International Energy Agency on Monday urged governments to avoid hoarding energy supplies or imposing export controls.

These institutions warned that such measures risk intensifying what they described as the largest shock to global energy markets.

Although no specific countries were named, the guidance aligns with growing concerns about supply constraints, rising oil prices, and the broader economic impact of geopolitical tensions.

Balancing supply and policy pressures

The US decision to end oil waivers highlights the complex balance between geopolitical strategy and market stability.

While the waivers had provided short-term relief to global energy markets, their removal underscores a renewed emphasis on sanctions enforcement.

At the same time, warnings from global financial institutions point to the risks of further supply disruptions if countries adopt protectionist energy policies.

As the conflict continues to shape global oil flows, policymakers face the challenge of managing inflationary pressures while maintaining stable energy supplies.