Official: US revoking sanctions relief on Iranian oil after ‘wholly unacceptable’ strikes on tankers

The United States is revoking a general license that authorized the sale of Iranian oil, a US official says, warning that Iran’s actions in the Strait of Hormuz are “wholly unacceptable” and will be met with consequences after attacks on tankers in the strategic waterway.

The move comes 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.

“As President Trump and the administration have repeatedly affirmed, the memorandum in effect in effect with Iran is entirely performance-based. Iran will only reap benefits if they exhibit good behavior,” the US official says in a statement sent to querying reporters.

“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 US official adds.

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.

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.

The US Treasury Department had on June 21 lifted previous sanctions to allow the production, delivery and sale of crude oil and petrochemical and petroleum products of Iranian origin through August 21, after the US and Iran signed an MOU.