US revokes Iran oil sanctions waiver after Strait of Hormuz strikes

The Trump administration on Tuesday revoked a sanctions waiver that had allowed the sale of Iranian oil and petrochemicals. The revocation comes after Iran reportedly struck three ships near the Strait of Hormuz, a key oil shipping waterway. The new document from the Treasury Department says that transactions that were authorized under its previous sanctions waiver would have to wind down by July 17. The waiver it previously issued would have allowed sales of Iranian oil through Aug. 21. The original sanctions waiver was part of a ceasefire memorandum of understanding (MOU) between the U.S. and Iran after months of war. Asked about the decision, a U.S. official told The Hill that the MOU is "performance-based" and that Iran would only benefit if it shows good behavior. The official said that Tehran's actions were unacceptable, and that reimposing sanctions was the consequence. However, they added that negotiators are continuing to work toward a final agreement. The closure of the Hormuz Strait amid the hostilities led to rising prices of oil and gas worldwide. Those prices had dropped amid the U.S.-Iranian agreement, but the future of the agreement is uncertain.