Trump administration reinstates Iran oil sanctions after Strait of Hormuz attacks

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The Trump administration on Tuesday revoked a general license that had authorized the sale of Iranian oil after several tankers were attacked while transiting the Strait of Hormuz.

The development is a sign that the peace agreement reached between the U.S. and Iran last month remains on fragile ground. The memorandum of understanding directed the U.S. to immediately ease sanctions on Iranian oil exports, which it did in issuing a waiver last month . That permission was initially set to last until at least Aug. 21.

But Treasury’s Office of Foreign Assets Control issued a new license Tuesday revoking that June waiver and requiring companies to wind-down any oil transactions by July 17.

In a statement, a U.S. official cited Iran’s “actions in the Strait” in revoking the waiver, calling them “wholly unacceptable to the United States.”

“As President Trump and the administration have repeatedly affirmed, the MOU in effect with Iran is entirely performance-based,” the official said. “Iran will only reap benefits if they exhibit good behavior.”

Negotiations toward a long-term peace agreement continue “in good faith,” the official added.

The new license gives companies 10 days to wind down any transactions already in progress, and said payments must be made into a blocked account in the United States. The July 7 license was signed by Bradley Smith, director of the Office of Foreign Assets Control.

In an advisory Tuesday, the Joint Maritime Information Center put the threat level for Hormuz as “severe,” citing recent attacks.

“The recent confirmed incidents highlight that the threat environment remains heightened and warrants extreme vigilance,” the JMIC said in its advisory.

The U.K. Maritime Trade Operations Center said it had received reports over the last two days from three tankers that had been attacked in the Hormuz, two of which were hit by “unknown projectiles” and one of which was struck by a drone.

Treasury Secretary Scott Bessent said last week that China has remained as the primary purchaser of Iranian oil since Treasury eased the sanctions. He said that the Iranians had not been able to sell their oil to a broader market because buyers remained wary of the U.S. reinstating the sanctions.

“This is a reason for the Iranians really to embrace these negotiations,” Bessent said in an interview with Fox News last Tuesday.

Carlos Anchondo contributed to this report.