US Reinstates Oil Sanctions on Russia and Iran

The United States Department of the Treasury is implementing an "Economic Fury" strategy to maximize pressure on Tehran and Moscow by ending temporary sanctions waivers on their oil exports. On April 11, 2026, the U.S. government allowed a 30-day waiver for Russian crude to expire, reinstating full sanctions to limit Russia's energy revenues. Following this, the Treasury announced it would not renew a separate waiver for Iranian oil, letting the authorization expire on April 19, 2026. This waiver had previously permitted the sale of Iranian petroleum loaded before March 20 to mitigate energy price spikes.

These policy shifts coincide with military escalations and a blockade of Iranian ports ordered by President Donald Trump after diplomatic talks in Pakistan failed. The combined impact of the sanctions and Iranian strikes on Gulf states has disrupted the Strait of Hormuz, severely hindering global oil shipments.

Global markets have reacted to the instability. Sinopec, the world's largest refiner, purchased several cargoes of Russian ESPO blend crude during the waiver period to replace lost Middle Eastern supplies, though it was forced to cut refining runs by five percent in March. India remains particularly vulnerable to these disruptions due to its heavy reliance on discounted Russian oil and Middle Eastern imports.