U.S. Revokes Iran Oil Waiver After Tanker Attacks

The Trump administration on Tuesday revoked a sanctions waiver that had permitted Iranian oil sales, after the Islamic Revolutionary Guard Corps attacked three commercial vessels in the Strait of Hormuz. The Treasury Department said the broader "General License X" issued two weeks earlier would be replaced by a narrower "General License X1" that authorizes no new Iranian oil sales after Tuesday.

Transactions already in process may proceed until July 17, with proceeds placed in a blocked, interest-bearing account.

Background on the Memorandum The original waiver formed part of a 60-day memorandum of understanding signed June 18 that also extended a ceasefire and required safe passage for commercial ships through the Strait. Oil prices had peaked at $125 a barrel in late April when the waterway was effectively closed; the memorandum helped ease those pressures.

A U.S. official told CBS News that the memorandum is performance-based and that Iran's actions were unacceptable.

“Iran will only reap benefits if they exhibit good behavior. Iran's actions in the Strait were wholly unacceptable to the United States and will be met with consequences." — U.S. official, statement to CBS News. Iran's Deputy Foreign Minister Kazem Gharibabadi posted on X that the revocation violated the memorandum and that Iran would take decisive actions to protect its interests. U.S. Central Command said it struck targets inside Iran in response to the vessel attacks, which it described as a clear violation of the ceasefire. A spokesman for Saudi Arabia's Embassy in the U.S. condemned the attacks on commercial vessels, noting that Saudi and Qatari tankers were among those targeted.”

Brent crude rose to $75 a barrel and West Texas Intermediate climbed to $71 a barrel on the news. Daniel Tannebaum, a former sanctions official now at Oliver Wyman, said China and India were the primary beneficiaries of the two-week waiver period. Tannebaum added that the Strait of Hormuz is permanently changed and that restoring free navigation will require a remarkable feat of diplomacy.