US reinstates sanctions on Iranian oil

The United States has reimposed sanctions on Iranian oil, rescinding a waiver that had been granted just over two weeks prior. The U.S. Treasury Department announced that new business involving Iranian crude oil, petrochemicals, and petroleum products is once again forbidden.

A U.S. government official explained that the waiver was lifted because the framework agreement with Iran is contingent on Tehran's behavior. Economic relief for Iran is only granted when it meets its commitments. The official stated that Iran's conduct in the Strait of Hormuz is "completely unacceptable" to the United States, particularly following recent attacks on tankers in the crucial waterway.

While Tehran had not officially commented on or claimed responsibility for the attacks, Iran had repeatedly asserted in recent days that only routes dictated by them through the Strait of Hormuz were safe. Existing and previously approved transactions are permitted to be settled only until July 17. After this date, new purchases or loading of Iranian oil onto ships will be prohibited, according to the Treasury Department.

The original waiver, issued on June 21 following talks between Washington and Tehran, had temporarily suspended U.S. prohibitions related to the production, delivery, and sale of Iranian crude oil and other petroleum products. This suspension was initially set to last until August 21. The easing of sanctions was part of a preliminary agreement intended to facilitate negotiations for a permanent deal. With this latest move, Washington is increasing economic pressure on Tehran. The Strait of Hormuz is vital for oil trade, and disruptions there have previously caused global prices to surge.

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The behavior of Tehran in the Strait of Hormuz is completely unacceptable to the United States.