Washington: U.S. Treasury Secretary Scott Bessent announced on Friday that the United States does not intend to extend a regulatory waiver that currently permits the acquisition of Russian oil and petroleum products presently in transit at sea. Bessent further emphasised that a similar one-time reprieve for Iranian oil is completely excluded from consideration.

“Not the Iranians,” Bessent told The Associated Press. "We have the blockade, and there's no oil coming out.”

The secretary projected that the ongoing blockade would soon force a domestic industrial crisis for Tehran. "And we think in the next two, three days, they're going to have to start shuttering production, which will be very bad for their wells,” he remarked.

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Energy Market Volatility

The Treasury Department’s stance comes amid heightened global anxiety regarding the U.S.-Israeli conflict with Iran. International energy markets have faced significant disruption following the closure of the Strait of Hormuz, a critical maritime corridor.

The U.S. initially implemented the Russian oil waiver in March as a stabilisation measure after global crude prices spiked beyond $100 per barrel. Although the Treasury Department previously renewed that waiver just 48 hours after Bessent had expressed opposition to an extension, the secretary indicated his position has now solidified.

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Diplomatic and Humanitarian Factors

During an interview with the AP concerning the war's effect on global commerce, Bessent addressed his previous reversal on the Russian sanctions relief. He attributed that decision to direct appeals from international leaders during high-level economic summits.

Bessent noted that during the World Bank and International Monetary Fund meetings last week, “More than 10 of the most vulnerable and poorest countries came to me and said, Can you help?”

"It was for those vulnerable and poor countries," Bessent explained regarding the previous extension. However, he dismissed the necessity of further relief, concluding, "I wouldn't imagine that we'd have another extension. I think the Russian oil on the water has been largely sucked up.”

With inputs from AP