The Trump administration on Tuesday revoked a waiver allowing the sale of Iranian oil after three tankers were attacked in the Strait of Hormuz, the latest twist in a conflict that has stretched on for months.
Last month, the Treasury Department issued a general license allowing Iran to produce, sell and deliver oil for two months. The exemption represented a major shift in America’s approach toward Iran, which has been heavily sanctioned for decades.
The exemption, if made permanent, could have helped Iran reshape its economy by allowing its oil to be openly sold on global markets.
Iran has not directly claimed responsibility for the attacks. But its government has asserted that it has sole control of the waterway, and it has been blamed for other such attacks during the war with the United States and Israel.
A U.S. official, who was not authorized to speak publicly, said that Iran’s actions in the Strait were unacceptable to the United States and that they would be met with consequences. The official added that Iran would only see benefits from the peace agreement if it demonstrated good behavior, and that negotiations toward a final deal would continue.
The license that was issued by the Treasury Department in June was designed to give Iran greater access to American currency by allowing the country to conduct oil transactions using U.S. dollars. It also allowed American importers to buy Iranian crude oil, petrochemical products and petroleum products.
The Trump administration provided Iran with temporary relief from sanctions earlier this year as it tried to curb oil prices by allowing more crude supplies to flow to global markets. The U.S. then ramped up the sanctions and created a military blockade preventing the sale of Iranian oil as part of an effort to cripple its economy.
Treasury Secretary Scott Bessent said at an event in New York last month that the sanctions reprieve for Iran was “better for the world” and the relief would be contingent on progress toward a comprehensive peace agreement.
“This is a very conditional performance-based negotiation, and we are offering them carrots, and then there are sticks,” Mr. Bessent said at the Economic Club of New York.
