The White House will allow the waiver on Iranian oil sanctions to expire on Sunday. The US granted sanctions waivers for Russian, Iranian, and Venezuelan oil after starting a war against Iran in an effort to keep energy prices from spiking.
Two US officials speaking with Reuters said that the White House is not planning to further extend the waivers on Iranian oil. The move was expected after President Donald Trump announced a total blockade of the Strait of Hormuz.
Tehran was already restricting the flow of ships in and out of the Persian Gulf. Iran has allowed vessels from “friendly nations” that pay a toll to pass the Strait. Trump also said that he would order the Navy to seize any ship that pays a toll to Tehran.
Trump imposed the blockade amid a two-week ceasefire. Pakistan brokered the truce in hopes it would lead to a peace agreement to end the US and Israeli war on Iran.
After Iran initially seized control of the Strait, in response to an unprovoked war started by the US and Israel, the oil price spiked. In an effort to keep energy prices from climbing higher, the White House granted sanctions waivers for Russian, Iranian, and Venezuelan oil.
The US allowed the waiver on Russian oil to expire on Monday. The waivers, combined with rising oil prices, allowed Moscow and Tehran to boost revenue from the war.
