The US warned Tuesday it will unleash full “Economic Fury” on Iran, ending a reprieve on sanctions of Tehran oil at sea and threatening to move against foreign banks that back Iran’s terror activities.
After the first day of the US blockade on the Strait of Hormuz, the US Treasury Department signaled that it will not renew a 30-day waiver of sanctions on Iranian oil at sea set to expire this week.
“Treasury is moving aggressively with Economic Fury, maintaining maximum pressure on Iran,” the agency said in a statement while referencing Operation Epic Fury, the current US military campaign in the Middle East.
“The short-term authorization permitting the sale of Iranian oil already stranded at sea is set to expire in a few days and will not be renewed,” the department said
The treasury had allowed about 140 million barrels of Iranian oil at sea to continue their shipments March 20 to alleviate soaring fuel prices caused by the war.
The waiver is set to expire April 19. The US said it also will not renew the waiver on Russian oil at sea, which expired Saturday, Trump administration sources told Reuters.
Both waivers had received backlash from US lawmakers, who argued they provided an economic lifeline to the people in Iran and Russia at a time of war in both countries.
Along with ending the waivers, The Treasury Department also added pressure to countries and municipalities that host banks that allegedly help fund Iran.
“Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities and is prepared to deploy secondary sanctions against foreign financial institutions that continue to support Iran’s activities,” it sid.
The treasury specifically sent out letters detailing the warning to China, Hong Kong, the United Arab Emirates and Oman after identifying banks in the nations linked to Iran.
“My hope is for your swift action to identify and stop any illicit activity linked to Iran to avoid further action from Treasury,” Treasury Secretary Scott Bessent said in the letter.
The department had previously informed banks last year that Iran had processed at least $9 billion through US correspondent accounts in 2024 with front companies in Hong Kong, the UAE and other countries.
