Trump Revokes Iran Oil-Sales Waiver After Strait of Hormuz Attacks

The Trump administration on Tuesday revoked a temporary license that had allowed Iran to sell oil, citing Tehran’s actions in the Strait of Hormuz.

An administration official said the decision was a response to Iran’s attack on commercial vessels in the waterway.

“Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences,” the official said.

The U.S. also launched strikes against Iran in response, U.S. Central Command announced Tuesday afternoon, calling Iran’s earlier attacks an “unwarranted” ceasefire violation.

Iran’s temporary license was issued last month and had been scheduled to remain in effect through Aug. 21. It allowed certain transactions tied to the production, sale and delivery of Iranian oil, along with related banking, insurance and transportation services.

The Treasury Department’s Office of Foreign Assets Control said companies can wind down existing transactions through July 17, but cannot make new purchases or load new shipments of Iranian crude, petroleum products or petrochemicals after Tuesday.

The official said the memorandum of understanding between Washington and Tehran is “entirely performance-based,” and that Iran will receive its benefits only if it “exhibit[s] good behavior.”

The revocation came hours after three tankers were hit near the Strait of Hormuz, including a Qatari liquefied natural gas carrier that Qatar said was struck by an Iranian drone.

The reversal threatens one of the biggest economic concessions in the administration’s 60-day framework with Iran, which was meant to support negotiations toward a final nuclear deal to end the war.

Still, the official said U.S. negotiators “continue to work in good faith towards a final deal.”