The US Treasury Department revoked a license that had authorized the sale of Iranian oil under a previous agreement with Tehran, following Iranian missile strikes near the critical Strait of Hormuz. The Office of Foreign Assets Control (OFAC) stated it was revoking Iran-related General License X, which permitted the production, delivery, and sale of Iranian oil, effective immediately.
US Cites Unacceptable Actions
A US official told CNBC on Tuesday that the decision was performance-based, reiterating that Iran would only benefit from the memorandum of understanding if it exhibited good behavior. The official said, “Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences.”
Strikes on Commercial Vessels
The revocation came after three commercial vessels were struck in recent days by Iranian missiles while transiting near the Strait of Hormuz. The attacks caused significant damage but no casualties were reported. The Strait of Hormuz is one of the world’s most important energy chokepoints, carrying a substantial share of global oil and liquefied natural gas exports from Gulf producers.
Broader Implications
This move escalates tensions between the US and Iran, potentially affecting global oil markets and regional stability. The US administration has repeatedly warned of consequences for any hostile actions near the strategic waterway.
