The United States revoked on Tuesday a general license that authorized the sale of Iranian oil, as a US official warned that Iran’s actions in the Strait of Hormuz were “wholly unacceptable” and would be met with consequences after attacks on tankers in the strategic waterway.
A source with knowledge of the attacks told The Jerusalem Post that Iran was responsible for launching at least five drones and missiles at three ships in the strait over the past day.
Oil prices rose more than 5% following the announcement. The US Treasury said it would allow a wind-down period to July 17 for Iran’s oil transactions that had been allowed under the now revoked license.
The US official said negotiators continued to work in good faith toward a final agreement with Iran despite the latest escalation.
The US move came after three tankers reported being struck by unknown projectiles in and near the Strait of Hormuz in recent days, the British navy-affiliated agency UKMTO said in a report. There was no immediate comment from Tehran or any claim of responsibility.
Iran’s Hormuz strikes threaten fragile deal with US
The attacks and the US response threaten to put a fragile diplomatic understanding between Washington and Tehran on shaky ground, raising the risk that further retaliation could derail negotiations over a broader agreement.
Another US official, speaking on condition of anonymity, said initial indications were that Iran had fired at three commercial vessels.
The potential escalation comes as both sides had been working toward a deal that included limits on Iran’s nuclear program and relief from some sanctions, including restrictions on oil exports.
Iranian attacks prolong disruption of shipping through Strait of Hormuz
The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most important energy chokepoints, with roughly a fifth of global oil consumption and large volumes of liquefied natural gas shipments passing through each day.
Any prolonged disruption could push up 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 fund government spending and support an economy weakened by years of US sanctions.
Despite restrictions, Tehran has managed to expand shipments in recent years, largely to China, making oil sales one of the country’s most important economic lifelines.
Any renewed effort to curb those exports could put additional pressure on Iran’s finances and its ability to sustain domestic programs and regional activities.
