The Trump administration on Tuesday revoked a sanctions waiver that had authorised Iran to sell oil and petrochemicals on international markets, a swift punitive response to a wave of attacks on commercial tankers in the Strait of Hormuz that threatens to unravel a diplomatic understanding reached with Tehran less than a month ago.
The Treasury Department’s Office of Foreign Assets Control said the general license, issued as part of a memorandum of understanding signed with Iran on June 18, was “revoked and superseded in its entirety,” effective immediately, though the department will allow a wind-down period for previously authorised transactions through July 17. A US official said the decision reflected the conditional nature of the agreement. “The MOU in effect with Iran is entirely performance-based,” the official said, adding that Tehran’s conduct in the Strait was “wholly unacceptable to the United States and will be met with consequences.”
The revocation came hours after at least three commercial vessels were struck in or near the strategic waterway, which carries roughly a fifth of the world’s crude oil traffic.
A Qatari-flagged liquefied natural gas tanker, the al-Rakiyat, was hit by a projectile while passing near the strait, according to Qatar’s Foreign Ministry, and the UK Maritime Trade Operations Centre separately reported a tanker struck by a drone that sustained minor structural damage. Reuters additionally reported that the Saudi-flagged supertanker Wedyan was damaged by a missile strike that ignited a fire in its engine room.
A Deal Unravelling Under Pressure?
The waiver’s revocation strips Iran of a financial concession that had been viewed as one of the more significant benefits extracted from its ceasefire arrangement with Washington, after years of sweeping oil sanctions. According to reports, the license permitting Iranian crude sales had only been formally issued on June 22 and was intended to remain in place for sixty days, until August 21, meaning it lasted barely two weeks before being pulled.
Despite the reversal, US officials sought to preserve the broader diplomatic track.
“Our negotiators continue to work in good faith towards a final deal,” the official said, according to multiple outlets, signalling that Washington was not abandoning talks entirely even as it moved to penalise Tehran.
Iran, for its part, did not claim responsibility for the tanker strikes, though its Foreign Ministry defended the country’s conduct in the waterway.
Iran’s spokesperson Esmail Baghaei said in a statement that vessels using uncoordinated routes or disabling their tracking systems put maritime security in the strait at risk. Tehran has increasingly pressed commercial ships to use a northern corridor under its control, rather than the US Navy-protected route along Oman’s coast that the affected tankers had reportedly been using.
Gulf Allies Condemn the Strikes
Saudi Arabia and Qatar, both of whose vessels were reportedly targeted, issued strong condemnations Tuesday. Qatar’s Foreign Ministry called the attack a “grave and explicit violation of international law” and said it held Iran “fully legally responsible” for the damage and any resulting consequences. Saudi Arabia’s foreign ministry similarly described the strikes as an assault on the safety of international navigation and global energy supplies.
The escalation unfolded as President Trump travelled to Ankara, Turkiye, for a NATO summit, where the security of Gulf shipping lanes was expected to be a topic of discussion among allied leaders. Trump had warned a day earlier that the United States would “finish the job” if a lasting peace agreement with Iran could not be reached, a comment that drew a pointed rebuke from Tehran.
Iranian Foreign Minister Abbas Araghchi said on social media that negotiations toward a final deal would not proceed if the threats continued, citing conditions in the memorandum of understanding that require an end to regional hostilities, including in Lebanon, before formal talks can resume.
Trump Airs Frustration With NATO Allies
Speaking alongside Turkish President Recep Tayyip Erdogan after arriving for the summit, Trump voiced displeasure with what he characterised as tepid support from NATO members during the recent conflict between the US, Israel and Iran, a war waged without formal alliance involvement.
“I was very disappointed with NATO,” Trump told reporters, saying he had used the war as a test of allied loyalty. He offered warmer words for Turkey specifically, crediting Erdogan’s government with playing an important supporting role during the conflict.
The renewed hostilities in the strait come as traffic through the waterway, a vital artery for European energy supplies, remains under close watch by maritime authorities following weeks of mines, warnings and disputed shipping corridors since the ceasefire took hold last month. With the oil license now revoked and both sides trading accusations, the durability of the broader US-Iran understanding appeared increasingly uncertain.
