The Trump administration on Tuesday reimposed sanctions on Iranian oil and petrochemical sales after Tehran reportedly attacked three vessels near the Strait of Hormuz.
The Treasury Department revoked a sanctions waiver issued on June 21 that had temporarily allowed transactions involving Iranian crude oil, petroleum products, and petrochemicals. Under the new guidance, companies have until July 17 to wind down transactions previously authorized under the waiver. The original authorization had been set to remain in effect through Aug. 21.
The waiver was issued as part of a ceasefire memorandum of understanding (MOU) reached between the United States and Iran following months of conflict. A U.S. official said the agreement was always contingent on Iran’s behavior. The official added that Tehran’s reported attacks near the Strait of Hormuz violated the terms of the understanding and prompted the administration to restore sanctions.
Despite the move, the official said negotiations toward a broader agreement with Iran are still ongoing.
The Treasury Department’s updated license makes clear that no new purchases, loading, or sales of Iranian oil or petrochemical products are permitted after July 7, with only limited wind-down activities allowed through July 17. Transactions involving other sanctioned jurisdictions or prohibited under separate U.S. sanctions authorities remain barred.
President Donald Trump told reporters Monday the administration was making progress toward an agreement with Iran but said the military was prepared to act if diplomatic efforts broke down.
“We’re either going to make a deal or we’re going to finish the job,” Trump said. “And it won’t be tough to finish the job.”
Trump said he would rather resolve the dispute through diplomacy than inflict suffering on the Iranian people.
“I’d rather make a deal because I don’t want to affect 91 million people,” he said. “We can knock down their bridges in one hour. We can knock out their energy supply.”
Tehran responded by accusing the United States of breaking the ceasefire memorandum of understanding after Washington restored the sanctions and later carried out military strikes. Iran’s Foreign Ministry said it would take “decisive measures” to safeguard the country’s national interests and security.
Earlier Tuesday, U.S. forces carried out what the military called a series of “powerful strikes” against Iran after Tehran allegedly attacked three commercial ships passing through the Strait of Hormuz. U.S. Central Command said the attacks violated the ceasefire agreement.