US revokes Iran oil waiver after tanker attacks in Strait of Hormuz

WASHINGTON - The Trump administration revoked a U.S. waiver that authorized Iran to sell oil in the open market under a memorandum of understanding with Tehran, jeopardizing the preliminary peace deal between the two countries. The Treasury Department's July 7 revocation of the oil license came in response to renewed hostilities near the Strait of Hormuz, where three tankers in recent days were hit by projectiles along the critical waterway for oil exports from Iran. A U.S. official confirmed the administration's action, adding that the 14-point memorandum signed by Trump and Iranian leaders in June is "entirely performance-based" and that Iran will only reap the benefits if they follow its terms. Although Iran has not accepted responsibility for the attacks, the U.S. official said Iran's actions in the strait are unacceptable and will be met with consequences. Still, the official said the United States and Iran continue to work in good faith towards a final deal. Crude oil prices spiked nearly 6% after the Trump administration revoked the oil license, with Brent crude nearing $76 a barrel. The action risks escalating tensions while the United States and Iran negotiate on a long-term peace agreement that addresses Iran's nuclear capacity. Removing restrictions on Iran's ability to sell oil - which accounts for more than half of the country's export revenue but has long faced U.S. sanctions - was a major U.S. concession in Trump's preliminary agreement with Iran. The now-revoked waiver would have allowed the production, delivery and sale of crude oils from Iran for 60 days through Aug. 21.