Trump Revokes Iran Oil Sanctions Waiver After Strait of Hormuz Tanker Attacks

The Trump administration is revoking a sanctions waiver that temporarily allowed Iranian oil production and sales after reported tanker attacks in the Strait of Hormuz.

The Trump administration is revoking a sanctions waiver that had allowed the production, delivery and sale of Iranian oil after a series of attacks on tankers in the Strait of Hormuz, according to a US official.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) is revoking the authorization that had permitted Iranian oil production, delivery and sales through August 21, the official told CNBC on Tuesday.

The waiver had been issued after the United States and Iran signed an interim agreement on June 17 that reopened the Strait of Hormuz and temporarily eased US sanctions on Iranian oil.

According to the US official, the administration decided to withdraw the waiver after Iran launched a series of attacks on tankers this week. The attacks were described as an effort to discourage ships from using a US Navy-protected shipping route near the coast of Oman.

A US official said the interim memorandum of understanding with Iran was contingent on Tehran’s conduct.

“As President Trump and the administration have repeatedly affirmed, the MOU in effect with Iran is entirely performance-based.”

The official added, “Iran will only reap benefits if they exhibit good behavior.”

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

The revocation means the authorization allowing Iranian oil production, delivery and sales under the temporary arrangement will no longer remain in effect.

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