U.S. revokes Iran oil waivers after attacks in Strait of Hormuz

Barak Ravid

Row of cargo ships on the horizon, cranes visible on some, against a hazy gray sky and calm greenish sea; distant vessels appear as silhouettes. — Large commercial vessels and a small boat navigate the waters off the southern port city of Bandar Abbas, Iran, in June. Photo: Hassan Ghaedi/Anadolu via Getty Images

The Trump administration on Tuesday revoked the temporary waivers it issued as part of the memorandum of understanding (MOU) with Iran that allowed Tehran to sell oil, the Department of Treasury announced.

Why it matters: The revocation of the waivers that was issued less than three weeks ago is in response to the renewed Iranian attacks against ships in the Strait of Hormuz over the past 24 hours.

The latest: An Iranian Foreign Ministry spokesperson said commercial vessels using uncoordinated routes with Iran or "tampering" with ships' tracking faced risks and disrupted Tehran's efforts to facilitate a safe passage in the Strait of Hormuz.

Driving the news: A U.S. official said the Office of Foreign Assets Control was revoking the general license that authorized the sale of Iranian oil because 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. Iran's actions in the Strait were wholly unacceptable to the United States and will be met with consequences. Our negotiators continue to work in good faith towards a final deal."

What they're saying: Tehran's Foreign Ministry said Iran was "diligently fulfilling its commitments" per the MOU in regards to "necessary measures" to manage the strait.

He said countries in the region and shipping companies should "refrain from any actions that contradict provisions of the MOU."

This is a breaking news story. Check back for updates.

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U.S. revokes Iran oil waivers after attacks in Strait of Hormuz

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