US Revokes Iran Oil Sales Permit Amid Strait of Hormuz Tensions After Tanker Attacks

The United States is set to revoke a general license that permitted the sale of Iranian oil, signaling a significant shift in policy amid heightened tensions in the Strait of Hormuz. The announcement follows a series of attacks on three commercial tankers in the crucial waterway, which sent oil prices climbing by more than 3%.

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The United States is revoking a general license authorizing the sale of Iranian oil, according to a U.S. official, who also warned of consequences over Iran’s actions in the Strait of Hormuz after three tankers were hit on Tuesday in the strategic waterway.

A U.S. official indicated that the license, initially issued under a June 22 agreement allowing Iranian oil sales through August 21, will be withdrawn. Iran has been given until July 17 to wind down any related transactions. This action poses a potential blow to the fragile interim agreement struck between the U.S. and Iran last month, which aimed to pause a conflict that began in February.

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Analysts say Tehran uses attacks on ships to underscore that leverage as it negotiates a long-term peace deal with the U.S.

Analysts suggest that Iran may be using such maritime incidents to underscore its leverage in negotiations for a long-term peace deal. Control over the Strait of Hormuz grants Tehran considerable influence. While U.S. officials state that negotiators are still working in good faith toward a final agreement, the revocation of the oil sales concession introduces a new layer of complexity. Qatar has blamed Iran for the tanker attacks, a claim Tehran has perplexing, while asserting that commercial vessels face risks on uncoordinated routes. Initial indications suggest Iran may have fired upon the vessels.

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Qatar blamed Iran for attacking the vessels, including the huge Qatari liquefied natural gas tanker, the Al Rekayyat, which reported being struck overnight by a drone that caused a fire in its engine room.