Bessent Says No Extension for Iran and Russia Oil Sanctions Waiver

[Financial News]  
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On the 24th local time, Scott Bessent said he had no plans to renew the waiver on the ban on Russian oil and petroleum product exports. He also made clear that the Iran oil sanctions waiver would be limited to a single extension.
The United States had temporarily suspended the ban on Russian and Iranian oil exports after the war with Iran and the resulting blockade of the Strait of Hormuz sent oil prices soaring.
Bessent told AP that day, "There will be no additional waiver for Iran." He added, "We are blocking the ports, and no oil is coming out of there."
The USN has been tightening the blockade on Iran, including seizing tankers carrying Iranian oil to China in Asian waterways.
Bessent said, "Within the next two to three days, they should begin to stop production as well." He added that this would have a very negative impact on Iran's oil fields.
If transport by tanker is blocked, there will be nowhere to store the oil even if it is produced, making shutdowns at oil fields unavoidable. Once operations stop, it is said to take considerable time to restart because of various technical factors, and in some cases the fields may never be usable again.
This suggests that even after the war ends, it may take a long time for Iran's oil production to return to previous levels.
Earlier, the United States had temporarily waived the ban on Russian oil and petrochemical exports last month. The measure was introduced after supply disruptions caused by a blockade of the Strait of Hormuz pushed international oil prices above $100 per barrel.
However, if market conditions become more urgent, there is a strong possibility that Bessent's statement about no extension will not hold.
On the 15th, Bessent said flatly that there were no plans for an extension, but two days later, on the 17th, the Department of the Treasury announced an additional 30-day extension.
dympna@fnnews.com Song Kyung-jae Reporter