US revokes Iran sanctions waiver after Strait of Hormuz attacks

Brent futures have risen after the US Department of the Treasury (DoT) revoked a sanctions waiver that had temporarily allowed transactions involving Iranian-origin crude oil and petrochemical products, following renewed attacks in and around the Strait of Hormuz.

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The 60-day general licence, issued on 21 June, had authorised the production, sale and delivery of Iranian crude oil and petrochemical products to global markets. That licence was revoked on 7 July and replaced with a new general licence.

Companies that had been relying on the earlier exemption have until 17 July to complete and wind down transactions that are already underway, according to a DoT notice.

The decision follows reports that Iran attacked three commercial vessels near the Strait of Hormuz on Tuesday, prompting US military retaliation and escalating tensions in the region.

“U.S. 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," US Central Command (CENTCOM) said on X.

"The U.S. strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz. Iran’s demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire,” it added.

The US Treasury Department also noted that the new general licence does not authorise any transactions involving Crimea, Cuba or North Korea.

By Tuhin Roy

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