US revokes Iran oil sanctions waiver after fresh strikes in Strait of Hormuz

The United States revoked Iran's oil sanctions waiver, ending its ability to openly sell crude in global markets, and resumed strikes after the Hormuz attacks, casting fresh doubt on the fragile ceasefire agreement and nuclear talks.

In Short

• Announcement came hours after fresh US strikes on Iran over Hormuz ship attacks
• US says Iran failed to meet commitments under performance-based ceasefire deal
• US Central Command called attacks in Hormuz dangerous and a ceasefire breach

The Donald Trump administration on Tuesday revoked, with immediate effect, a sanctions' waiver that had allowed the purchase of Iranian oil without attracting US penalties, saying its ceasefire agreement with Iran was "entirely performance-based" and that Tehran had failed to uphold its commitments after attacks on commercial vessels in the Strait of Hormuz prompted fresh American military strikes.

"As President Trump and the administration have repeatedly affirmed, the MoU in effect with Iran is entirely performance-based. Iran will only reap benefits if they exhibit good behavior," a US official said.

"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," the official added.

The general licence, issued in late June and originally valid until August 21, had temporarily allowed the purchase of Iranian energy without triggering US sanctions.

The move also raises fresh questions over the fragile Memorandum of Understanding (MoU) between Washington and Tehran, which had paused hostilities and paved the way for negotiations on Iran's nuclear programme and sanctions relief.

US LAUNCHES 'SERIES OF POWERFUL STRIKES' ON IRAN

The announcement came hours after US Central Command said it had begun "a series of powerful strikes" against Iran in retaliation for attacks on three commercial vessels transiting the Strait of Hormuz, calling Tehran's actions "unwarranted", "dangerous" and "a clear violation of the ceasefire".

"US Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway," the command said in a post on X.

3 SHIPS ATTACKED IN HORMUZ

The latest US strikes targeted Iran's air defence systems, coastal surveillance infrastructure, surface-to-air missiles, anti-ship cruise missiles and drone launch sites, a US official told Reuters on condition of anonymity on Tuesday.

One of the vessels targeted was the Qatari ship Al-Rekayyat, which was reportedly carrying energy shipments to India.

Iranian state media reported multiple explosions across the country's south. Seven blasts were heard in the city of Sirik, while six projectiles reportedly hit the Taheroui Pier area. Explosions were also reported on Qeshm Island and in the port city of Bandar Abbas.

Iranian President Masoud Pezeshkian reportedly cut short his visit to Iraq and returned to Iran following the strikes.

The US military action came hours after three commercial tankers were hit by projectiles in the Strait of Hormuz. The British military confirmed the attacks, which marked the highest number of assaults on shipping in a single day since late April, according to the UN's International Maritime Organisation.

The waiver's withdrawal could have implications for countries such as India, which was among the largest buyers of Iranian crude before US sanctions were imposed. Iranian oil accounted for around 10.5% of India's crude imports in 2018, with refiners benefiting from favourable credit terms and lower freight costs due to Iran's proximity

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