Washington DC [US], April 16 : United States Secretary of the Treasury Scott Bessent on Wednesday (local time) said that the US will not renew the general license that allowed limited transactions involving Russian and Iranian oil amid ongoing geopolitical tensions.
"We will not be renewing the general license on Russian oil and Iranian oil. That was oil that was on the water prior to March 11th. All that has been used," Bessent said during a media briefing.
Meanwhile, the United States Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed fresh sanctions targeting what it described as "Iran's illicit oil transportation infrastructure," including around two dozen individuals, companies, and vessels, Al Jazeera reported.
In a statement, the Treasury said the entities were part of a network linked to Iranian oil shipping figure Mohammad Hossein Shamkhani, the son of a senior adviser to Iran's former Supreme Leader Ali Khamenei, according to Al Jazeera.
As per Al Jazeera, Secretary of the Treasury Scott Bessent said the Trump administration would continue to "cut off Iran's illicit smuggling and terror proxy networks."
The announcement comes as part of the United States' broader push to tighten economic pressure on Iran, particularly in the energy sector, even as the region grapples with instability and supply disruptions linked to the ongoing conflict.
Earlier, the US Treasury Department had indicated that it does not intend to extend the temporary sanctions relief granted for Iranian-origin crude oil and petroleum products. The measure, introduced in March, was aimed at easing immediate supply concerns by allowing the sale and delivery of Iranian oil that had already been loaded onto vessels.
In a statement, the Treasury Department said it is "moving aggressively with Economic Fury, maintaining maximum pressure on Iran," and warned global financial institutions against facilitating Tehran's activities.
"Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities and is prepared to deploy secondary sanctions against foreign financial institutions that continue to support Iran's activities," the statement said.
It further clarified that the short-term authorisation permitting the sale of Iranian oil stranded at sea would expire within days and would not be renewed.
The temporary easing, announced on March 21, had allowed transactions related to Iranian-origin crude oil and petroleum products loaded on vessels on or before March 20, with a validity period extending until April 19, 2026. This included provisions for the import of such oil into the United States under specified conditions.
However, with the licence set to lapse, Washington is now reverting to its stricter sanctions regime as part of its "maximum pressure" strategy against Tehran.
As the conflict with Iran is still ongoing, the strategic waterway remains effectively closed to most maritime traffic, continuing to pressure global energy supplies and diplomatic relations.
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