US Reimposes Sanctions on Iranian Oil After Attacks in Strait of Hormuz

The United States has revoked the general license permitting the sale of Iranian oil, effectively reinstating sanctions on Tehran's oil exports. This move follows attacks on commercial vessels in the Strait of Hormuz, which violated the memorandum of understanding between the two countries. A senior US official told Reuters that the Office of Foreign Assets Control (OFAC) at the Treasury Department decided to cancel the license, a key element of the agreement with Iran. The official emphasized that the memorandum is entirely performance-based, stating, "Iran will only benefit if it demonstrates good behavior." The official described Iran's actions in the Strait of Hormuz as "completely unacceptable to the United States and will have consequences." Despite this, the US negotiation team continues to work in good faith toward a final agreement.

The decision came after at least four commercial ships were attacked or damaged since the memorandum was signed, including two vessels hit overnight. Following the announcement of the sanctions reinstatement, oil prices surged by about 5%. Meanwhile, talks between the US and Iran have been on hold recently, coinciding with the funeral events for Iran's former Supreme Leader Ali Khamenei and amid calls within Iran for retaliation against the United States and Israel.