Oil prices jumped more than 5 percent on Tuesday after the United States revoked its sanctions waiver on Iranian oil. This move came in response to strikes on three commercial vessels near the Strait of Hormuz, a critical chokepoint for global oil shipments.
International Brent crude oil surged nearly 5.5 percent, surpassing $75 per barrel as of Tuesday evening.
A U.S. official told The Hill that the memorandum of understanding (MOU) designed to pause hostilities between the U.S. and Iran is "entirely performance-based." The official added, “Iran will only reap benefits if they exhibit good behavior,” and described Iran’s actions in the Strait as “wholly unacceptable to the United States and will be met with consequences.”
The Treasury Department issued a new directive requiring that transactions previously authorized under the sanctions waiver be wound down by July 17. The waiver had allowed sales of Iranian oil through August.
Iran’s Deputy Foreign Minister Kazem Gharibabadi condemned the revocation, stating it violated the MOU. He accused the U.S. of repeatedly breaching the agreement, citing "the actions of the Zionist regime in Lebanon and threatening statements against Iran," referring to Israel’s military presence in Lebanon.
Tensions escalated after Maritime Trade Operations, affiliated with the British Royal Navy, reported that a commercial tanker caught fire on Monday following a projectile strike. Central Command (Centcom) was reported to be preparing retaliatory attacks against Iran.
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