The US revoked the license that allowed the sale of Iranian oil
Kyiv • UNN
The US Treasury revoked the license for the sale of Iranian oil following attacks on tankers. Oil prices rose more than 5% after the announcement.
The U.S. Treasury Department revoked permission to sell Iranian oil in response to attacks on tankers in the Strait of Hormuz, jeopardizing the temporary peace agreement between Washington and Tehran. Reuters reports, citing UNN.
The United States on Tuesday revoked a general license that allowed the sale of Iranian oil, after a U.S. official warned that Iran's actions in the Strait of Hormuz are "completely unacceptable" and will have consequences following attacks on tankers on that strategic waterway
Oil prices rose more than 5% after the announcement. The U.S. Treasury Department said it will allow a wind-down period for Iranian oil operations that were permitted under the revoked license until July 17.
A U.S. official said negotiators continue to work in good faith to reach a final agreement with Iran, despite the latest escalation.
The U.S. move came after reports that three tankers were struck by unknown projectiles in and near the Strait of Hormuz in recent days, according to the UKMTO, which is affiliated with the British navy. These attacks and the U.S. response threaten to jeopardize the fragile diplomatic understanding between Washington and Tehran, raising the risk that further retaliatory measures could derail negotiations on a broader agreement
The publication notes that the potential escalation comes as both sides were working on an agreement that included limits on Iran's nuclear program and the lifting of some sanctions, including restrictions on oil exports.
The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world's most important energy chokepoints, through which roughly one-fifth of the world's oil consumption and large volumes of liquefied natural gas supplies pass daily. Any prolonged disruption could lead to rising energy prices and increase pressure on consumers and governments already facing higher fuel costs.
Oil exports remain a critical source of revenue for Iran, providing billions of dollars in hard currency that help finance government spending and support an economy weakened by years of U.S. sanctions.
Any renewed efforts to restrict these exports could create additional pressure on Iran's finances and its ability to sustain domestic programs and regional activities.
Recall
At the end of June, the U.S. Treasury Department issued a temporary general license for 60 days allowing the production, supply, and sale of Iranian oil.