US Treasury
US federal agency using sanctions waivers to manage wartime oil markets in 2026.
Last refreshed: 30 March 2026 · Appears in 2 active topics
Can Treasury sanction its adversaries while waiving those same sanctions to save the economy?
Latest on US Treasury
- What is the US Treasury?
- The US Department of the Treasury, founded in 1789, is America's principal federal economic and financial agency. It collects taxes, manages government debt, and through the Office of Foreign Assets Control (OFAC) administers economic sanctions against foreign adversaries.
- Why did the US Treasury lift sanctions on Russian oil in 2026?
- In March 2026, Treasury Secretary Scott Bessent issued 30-day waivers on 124 million barrels of Russian crude already at sea, permitting any country to buy it. The stated aim was to stabilise global oil prices after Hormuz disruption during the Iran war drove Brent above $114 a barrel.Source: US Treasury
- How much Iranian oil did the US Treasury sanction waiver cover?
- The Treasury lifted sanctions on 140 million barrels of Iranian crude already loaded on tankers, granting a 30-day waiver through 19 April 2026. That volume equals roughly 1.5 days of global oil consumption.Source: US Treasury
- What is OFAC and how does it enforce sanctions?
- The Office of Foreign Assets Control (OFAC) is the Treasury division that administers US economic and trade sanctions. It designates individuals, entities, and countries, freezes assets, and can grant limited waivers. In 2026 it has granted broad waivers on both Russian and Iranian crude oil cargoes.
- How do US Treasury sanctions differ from EU sanctions?
- US Treasury (OFAC) sanctions carry extraterritorial reach: foreign companies risk being cut off from the US financial system for breaching them. EU sanctions apply within the bloc but lack that extraterritorial bite. In 2026, the EU criticised Treasury's Russian crude waivers as undermining European security, highlighting the two regimes' diverging priorities.Source: European Council
Background
The US Department of the Treasury, founded in 1789, is Washington's principal economic and financial agency. Its Office of Foreign Assets Control (OFAC) administers and enforces economic sanctions, making it one of the most consequential levers of American Foreign Policy outside direct military action. Scott Bessent, confirmed as Treasury Secretary in 2025, now oversees the department during the most acute energy crisis since the 1970s.
In 2026, Treasury has become a frontline instrument of wartime economic management. It issued 30-day sanctions waivers on 124 million barrels of Russian crude in March, permitting any country to purchase them through 11 April , then lifted sanctions on a further 140 million barrels of Iranian crude already at sea, granting another 30-day waiver through 19 April .
The contradiction is sharp: Treasury is simultaneously prosecuting a sanctions regime against two adversaries while selectively relaxing those same sanctions to prevent oil above $126 a barrel from tipping the US economy into recession, with Goldman Sachs placing recession odds at 25% .
