The United States issued a stern warning on Tuesday, declaring its intent to impose severe economic measures against Iran. The announcement marks the end of a temporary exemption on sanctions targeting Iranian oil transported by sea. The US also cautioned that foreign banks involved in Iran’s alleged terrorist financing could face repercussions.

Following the initial day of the US blockade of the Strait of Hormuz, the US Treasury Department clarified that it will not extend the 30-day sanctions waiver on Iranian oil shipments, which is due to lapse this week.

“Treasury is acting decisively with our Economic Fury strategy to maintain intense pressure on Iran,” stated the department, citing Operation Epic Fury, the ongoing US military initiative in the Middle East.

The statement further noted, “The temporary authorization allowing the sale of Iranian oil currently stranded at sea is nearing its expiration and will not be prolonged.”

Previously, the Treasury had permitted approximately 140 million barrels of Iranian oil to continue their maritime journey from March 20, a move designed to ease the surge in fuel prices exacerbated by the conflict.

With the waiver set to conclude on April 19, the US has also decided against renewing a similar waiver on Russian oil at sea, which came to an end this past Saturday, according to sources within the Trump administration speaking to 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.

With Press wires