US revokes Iran oil waiver after Hormuz attacks
The United States had issued the two-month sanctions waiver as part of its preliminary deal with Iran.
Elizabeth Hagedorn Jul 7, 2026
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A picture taken on March 12, 2017, shows an Iranian tanker docking at the platform of the oil facility in the Khark Island, on the shore of the Gulf. — ATTA KENARE/AFP via Getty Images
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WASHINGTON — The Trump administration is revoking a temporary waiver that authorized the sale of Iranian oil as part of the two countries’ preliminary agreement to end their war.
Speaking on condition of anonymity, a US official said the revocation was the result of “wholly unacceptable” Iranian strikes on commercial vessels in the Strait of Hormuz this week.
Iran was required to reopen the strait as part of the memorandum of understanding reached between the two sides last month. On Tuesday, the UK’s Maritime Trade Operations center raised its threat level for the Strait of Hormuz to “severe” after three vessels in or near the waterway were hit by “unknown projectiles.” Two of the targeted tankers were from Saudi Arabia and Qatar, both of which condemned Iran for the attacks.
“As President Trump and the administration have repeatedly affirmed, the MOU in effect with Iran is entirely performance-based,” the US official said in a statement. “Iran will only reap benefits if they exhibit good behavior."
Tehran has not claimed responsibility for the maritime attacks, which occurred during funeral processions in the Iranian city of Qom for late Supreme Leader Ayatollah Ali Khamenei, who was killed on the opening day of the war.
The decision to reimpose oil sanctions comes less than three weeks after the Treasury Department issued a June 21 general license allowing the production, delivery and sale of crude oil and petrochemical and petroleum products of Iranian origin through Aug. 21. It allowed payments in US dollars to the government of Iran and blacklisted Iranian entities for oil purchases that would otherwise be prohibited under US sanctions.
Both Republicans and Democrats voiced concern over the administration’s decision to grant upfront sanctions relief to Iran before it made concessions on its nuclear program. The memorandum establishes a 60-day window for nuclear talks and says Washington will “terminate all types of sanctions” against Tehran as part of a final agreement.
Rather than discuss Iran’s nuclear program, last week’s indirect negotiations in Qatar focused on reopening the Strait of Hormuz and the release of Iran’s frozen funds.
This developing story has been updated.
Related Topics
Oil and gas
Iran-US tensions
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