US rejects fresh Russian oil waivers as Iran rules out direct talks

US treasury secretary Scott Bessent on Friday said the United States does not plan to renew a waiver allowing the purchase of Russian oil and petroleum products that are currently at sea. He also made clear that a renewal of the one-time waiver for Iranian oil at sea is “totally off the table”.

“Not the Iranians,” Bessent told the Associated Press. “We have the blockade, and there’s no oil coming out. And we think in the next two, three days, they’re going to have to start shuttering production, which will be very bad for their wells.”

Bessent’s statements come as the world remains on edge over the US-Israeli war in Iran, with global energy markets ensnarled by disruptions following the closure of the Strait of Hormuz.

The US originally issued a waiver for Russian oil sales and petroleum products in March with the intent of stabilising global energy markets after crude oil prices surged above USD 100 per barrel. The Treasury Department renewed the waiver two days after Bessent said at the White House that he had no plans to extend the sanctions relief.

In an AP interview about the impact of the US-Israeli war on global energy markets and other issues, Bessent explained his earlier change of position and ruled out the notion of renewing sanctions waivers for both Russia and Iran.

Referring to discussions during meetings of the World Bank and the International Monetary Fund last week, he said: “More than 10 of the most vulnerable and poorest countries came to me and said, ‘Can you help?’ It was for those vulnerable and poor countries. But I wouldn’t imagine that we’d have another extension. I think the Russian oil on the water has been largely sucked up.”

Even as Washington signalled a harder line on sanctions, Iran indicated that diplomatic engagement with the US would remain indirect. Shortly after arriving in Pakistan, Iranian foreign minister Abbas Araghchi made it clear that there would be no direct negotiations with American officials during this visit.

Foreign ministry spokesperson Esmael Baqaei said on X that “no meeting is planned to take place between Iran and the US”. Instead, he said, Pakistani officials would convey messages between the delegations.

Baqaei thanked the Pakistani government for its “ongoing mediation & good offices for ending American imposed war of aggression”.

The stance from Tehran contrasts with earlier indications from the White House, which had said on Friday that its envoys would meet Araghchi.

Together, the developments point to a tightening of economic pressure alongside a shift towards backchannel diplomacy, even as the conflict continues to roil global energy markets.

With AP/PTI inputs