US Said to Reinstate Iranian Oil Sanctions After Aug. 19, Tightening Pressure on Tehran

Temporary waiver for Iranian oil sanctions set to expire after Aug. 19

The Trump administration plans to end a temporary waiver on sanctions for Iranian oil after Aug. 19 and reinstate the restrictions, Reuters reported.

Reuters, citing administration officials on Aug. 14, said the US government intends to reimpose sanctions on Iranian oil once the waiver expires.

The Trump administration said on July 20 that it would allow the sale of Iranian oil stranded at sea for 30 days. The move was meant to contain a spike in global oil prices caused by the war with Iran. The authorization runs until 12:01 a.m. Eastern time on Aug. 19.

Treasury Secretary Scott Bessent said the measure helped bring about 140 million barrels of oil into the global market and eased pressure on energy supplies during the war.

The move to restore sanctions signals broader economic pressure on Iran. Beginning a day earlier, the administration also started blocking vessels departing from or headed to Iranian ports. The measure is intended to curb Iranian oil exports and limit Iran's collection of transit fees through the Strait of Hormuz.

One official said the Trump administration could impose a range of penalties, including secondary sanctions, on entities involved in illegal dealings with Iran, such as purchases of Iranian oil. The US also did not extend an exemption for seaborne Russian oil transactions that expired on Aug. 11, Reuters reported.

The temporary easing of sanctions on Iran and Russia had previously drawn bipartisan criticism in Congress. Lawmakers argued the relief could allow funds to flow to the two countries and help finance their wars.

Lee Su, Hankyung.com reporter 2su@hankyung.com