US Fires New "Economic Cannon" at Iran, Disrupting Tehran's Economy
The United States is set to halt sanctions waivers for Iranian oil at sea this week. Quietly, Washington also allowed sanctions waivers for Russian oil to expire at the end of last weekend.
This firm step is part of a total blockade against oil shipments from Iranian ports. The decision indicates that the US Department of the Treasury is beginning to deploy its full economic might to pressure Tehran. One US administration official provided an explanation to Reuters regarding the step.
“The step on Tuesday marks that the Department of the Treasury is deploying full force in ‘economic fury’ against Iran,” the official stated, quoted by Reuters on Wednesday (14/4/2026).
The term refers to Operation Epic Fury. This is a US-led military campaign against the country. The Donald Trump administration itself has long applied maximum pressure against Iran. This is related to the nuclear programme and support for militant groups in the Middle East.
To date, sanctioned oil has been reported to still reach the Chinese market. However, the previous sanctions waivers were deliberately granted to maintain global energy supply stability. US Treasury Secretary Scott Bessent provided an explanation regarding the function of those waivers last month.
“The waivers issued by the Department of the Treasury on 20 March allowed around 140 million barrels of oil to reach the global market. This helped alleviate energy supply pressures during the war against Iran,” Bessent said.
Now, the validity period of those waivers will end on 19 April. This decision ends the Trump administration’s controversial efforts to lower global energy prices. Currently, oil prices have indeed surged since the outbreak of the US and Israel war against Iran.
This step is also triggered by criticism from US parliament members. They assessed that the sanctions waivers actually help the enemy’s economy. Washington is preparing punishments for institutions involved in prohibited activities with Iran. One government official source gave a stern warning to parties that violate it.
“In addition, with the return of UN sanctions against Iran, any activity with Tehran could trigger additional sanctions. Iran has a history of trying to hide behind legitimate activities to carry out illegal actions,” the source said.
The US Department of the Treasury is now pressuring countries that host banks channelling funds to Iran. Warning letters have been sent to China, Hong Kong, the UAE, and Oman. This is done because Iran is suspected of processing US$9 billion in funds through US correspondent accounts in 2024. In its official letter, Scott Bessent requests cooperation from the authorities of those countries.
“My hope is your swift action to identify and stop illegal activities related to Iran. This is done to avoid further action from the Department of the Treasury,” Bessent wrote in his letter.
In addition to banking channels, the US is also tightening physical guards on sea routes. Bessent emphasised that the blockade in the Strait of Hormuz will ensure no ships pass carrying illegal oil. Bessent gave the final affirmation to media crews regarding the fate of China’s energy supplies.
“So they won’t be able to get the oil. They may buy oil, but not Iranian oil,” Bessent stressed.
China is known to purchase more than 90% of Iran’s oil. That amount covers around 8% of their total annual purchases. However, with this new policy, the US is tightly closing that export loophole.