Full Sanctions Pressure Returns
The waiver on Iranian oil was originally issued by the Treasury Department on March 20. According to Treasury Secretary Scott Bessent, it had allowed approximately 140 million barrels of oil to reach international markets during a period of heightened energy supply concerns tied to the ongoing conflict involving Iran. At the time, the logic was straightforward — easing the flow of oil was meant to keep global energy prices from spiralling further upward.

But that rationale has now been set aside. One official described the latest move as the Treasury going "full force on Economic Fury" — an apparent reference to Operation Epic Fury, the US-led military campaign against Iran. The Trump administration has consistently framed its approach toward Tehran as one of maximum pressure, citing Iran's nuclear ambitions and its support for militant groups across the Middle East. Critics, however, had pointed out an obvious contradiction: sanctioned Iranian oil was still finding its way to China throughout this period.

The decision to also allow the Russian oil waiver to lapse without fanfare adds another layer to the policy shift. Lawmakers from both major US political parties had been vocal in their opposition to the waivers, arguing that exemptions benefiting Iran — a country at war with the United States, and Russia — actively fighting in Ukraine — were difficult to justify on any strategic or moral grounds.

Pressure Mounts on China and Regional Financial Hubs
Beyond allowing the waivers to expire, Washington escalated its pressure campaign on Tuesday by targeting the financial networks that have enabled Iran to move money internationally. The Treasury Department sent formal letters to China, Hong Kong, the United Arab Emirates, and Oman, identifying banks in those jurisdictions that it says have facilitated Iranian financial activity.

The warnings follow disclosures made late last year, when Treasury informed banks that Iran had processed at least 9 billion dollars through US correspondent accounts in 2024 alone — using a web of front companies operating primarily in Hong Kong, the UAE, and similar locations. Bessent's letter to those governments was direct: "My hope is for your swift action to identify and stop any illicit activity linked to Iran to avoid further action from Treasury."

The stakes extend beyond bilateral diplomacy. Bessent told reporters that the US blockade of the Strait of Hormuz would prevent Chinese vessels and others from accessing Iranian oil shipments. "They're not going to be able to get their oil. They can get oil. Not Iranian oil," he said. He also noted that China had been purchasing more than 90 percent of Iranian oil exports, which represented around 8 percent of China's total annual oil intake — a significant dependency that Washington is now directly targeting. Officials also warned that any engagement with Tehran, even through seemingly legitimate business channels, could trigger additional sanctions, particularly given the reimposition of UN sanctions on Iran.