The United States will not renew waivers that allowed the purchase of Iranian and Russian oil already in transit, Treasury Secretary Scott Bessent told The Associated Press. He said the decision follows the ongoing blockade on Iran and suggested that Iranian production could soon be forced to shut down if exports remain blocked.

The waivers were originally introduced to ease pressure on global energy markets during the wars involving Russia and Ukraine and the United States and Iran. Bessent acknowledged concerns from vulnerable and poor countries that rely on energy imports but indicated that another extension is unlikely, noting that most Russian oil shipments covered by the waiver have already been absorbed.

The Treasury Department is also increasing pressure on Iran by imposing new sanctions on entities tied to an oil shipping network linked to Mohammad Hossein Shamkhani, whose father was killed in strikes earlier this year. Additional sanctions target an Iranian financier connected to Hezbollah and companies involved in a scheme exchanging Venezuelan gold for Iranian oil.