This decision comes amidst a US blockade on traffic through the Strait of Hormuz following unsuccessful peace talks. The waiver, issued by the Treasury Department on March 20, is scheduled to end on Sunday and was specifically limited to Iranian oil and petrochemical products already loaded onto tankers.
Additionally, the administration has allowed a similar waiver for some sanctioned Russian crude to lapse.
Reuters previously reported on this development. The ongoing US and Israeli conflict with Iran has triggered a global energy crisis, prompting the administration to seek ways to mitigate rising prices. However, President Donald Trump’s administration has faced backlash for easing sanctions on oil from Iran and Russia amidst the geopolitical tensions in the Middle East and Ukraine.
The White House official indicated that the US aims to impose significant economic pressure on Iran.
Energy Secretary Chris Wright referenced the potential for the US to employ other strategies to amplify economic pressure on the Tehran regime earlier on Tuesday.
While the blockade serves as one measure “to bring this conflict to an end,” Wright stated on Fox News, “there could be other sources of economic pressure as well.”
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