Strait of Hormuz. Reuters Yonhap News

It has been reported that the Donald Trump administration does not plan to extend the waiver on sanctions for Iranian oil that expires on the 19th (local time).

Reuters reported on the 14th, citing administration officials, that the U.S. government plans to reimpose sanctions on Iranian oil after the 19th. One source said it was a signal that the U.S. Treasury would fully activate ‘economic fury’ against Iran. This was a play on the name of the anti-Iran military operation, ‘Grand Fury’, and was interpreted as an intent to pursue comprehensive economic pressure on Iran.

Earlier, to curb the surge in global oil prices driven by the war with Iran, the Trump administration announced on the 20th of last month that it would allow for 30 days the sale of Iranian oil that had been held at sea. The sales authorization runs until 12:01 a.m. on the 19th Eastern Time. Treasury Secretary Scott Besant said this measure had brought about 140 million barrels of crude into the global market, helping to ease the burden on energy supplies during the war.

In response to the de facto closure of the Strait of Hormuz by Iran, the Trump administration has been implementing a maritime blockade against Iran since the previous day. The move is seen as an attempt to increase its leverage in future end-of-war negotiations by blocking exports of Iranian oil and restricting the collection of transit fees for the Strait of Hormuz, thereby pressuring Iran.

A source also told Reuters that the Trump administration could apply a range of measures, including secondary sanctions, to entities involved in illegal activities with Iran, such as purchasing Iranian oil. The source said, “Any activity with Iran could trigger additional sanctions.”

The United States is also understood not to have extended the waiver for maritime transactions in Russian oil that expired on the 11th. Earlier, there had been criticism from both parties over the Trump administration temporarily easing sanctions on Iran and Russia, due to concerns that these warring parties could enjoy windfall gains, such as securing funds to continue the war through the relaxation of sanctions.