UK and EU price cap reduction 

From 0001 GMT 3rd September, the UK and EU price cap on Russian crude has been reduced to $47.6 per barrel, down from the previous price cap of $60 a barrel. There is no price cap change for refined high and low value oil products; these remain at $100 a barrel for high value oil products and $45 a barrel for low value oil products.

There is a 45-day ‘wind-down period’ for Russian crude oil trades contracted before the change in the cap, and it complies with the original $60 cap. The wind-down period ends on 17 October 2025. 

As highlighted in a previous update, the EU, in the 18th sanctions package, has committed to a review of the price cap after six months, accompanied by an automatic dynamic adjustment mechanism. 

UK government guidance updated on 18 July 2025 details the change in the price cap and can be found here. 

OFAC Iranian sanctions

On 2 September, OFAC sanctioned a network of shipping companies and vessels, described by OFAC as ‘led’ Iraqi–St Kitts and Nevis businessman Waleed Khaled Hameed al-Samarra’i. OFAC asserted that the sanctioned network covertly blended Iranian oil with Iraqi oil and marketed it internationally as purely Iraqi origin. 

Secretary of the Treasury Scott Bessent said, “By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies. We remain committed to an oil supply free from Iran and will continue our efforts to disrupt the ongoing attempts by Tehran to evade U.S. sanctions.” 

This action is a continuation of the campaign of maximum economic pressure on Iran in accordance with the National Security Presidential Memorandum-2 . A link to the full OFAC press release can be found here . 

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