The Trump administration reimposed sanctions on Iranian oil and petrochemical sales on Tuesday following reports that Tehran attacked three vessels near the Strait of Hormuz.
The Treasury Department revoked a sanctions waiver issued June 21 that had temporarily allowed transactions involving Iranian crude oil, petroleum products, and petrochemicals. Companies have until July 17 to wind down transactions previously authorized under the waiver, which was scheduled to remain in effect through August 21.
This waiver was part of a ceasefire memorandum of understanding reached between the United States and Iran after months of conflict.
A U.S. official stated that the agreement was contingent on Iran’s conduct and that Tehran’s reported attacks near the Strait of Hormuz violated the terms of the understanding, prompting the administration to restore sanctions.
Despite this decision, the official noted negotiations toward a broader agreement with Iran are continuing.
The Treasury Department’s updated license bars new purchases, loading, or sales of Iranian oil or petrochemical products after July 7. Limited wind-down activities remain permitted through July 17. Transactions involving other sanctioned jurisdictions or activities prohibited under separate U.S. sanctions authorities continue to be barred.
President Donald Trump told reporters Monday that the administration was making progress toward an agreement with Iran but said the U.S. military remained prepared to act if diplomacy failed.
“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 emphasized his preference for diplomatic resolution: “I’d rather make a deal because I don’t want to affect 91 million people.” He added, “We can knock down their bridges in one hour. We can knock out their energy supply.”
Tehran accused the United States of violating the ceasefire memorandum after Washington restored sanctions and conducted military strikes. Iran’s Foreign Ministry stated the country would take “decisive measures” to protect its national interests and security.
Earlier Tuesday, U.S. forces carried out what the military described as “powerful strikes” against Iran in response to Tehran’s alleged attacks on three commercial ships traveling through the Strait of Hormuz. U.S. Central Command confirmed that the attacks violated the ceasefire agreement.
