US revokes waiver allowing Iran oil sales after attacks

Magdalena Del Valle, Bloomberg News on Jul 7, 2026

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The U.S. Treasury Department revoked a waiver that allowed the sale of Iranian oil in response to attacks on tankers in the Strait of Hormuz, jeopardizing an interim peace deal between Washington and Tehran.

The Office of Foreign Assets Control said no new transactions for Iranian oil may take place on or after July 7. A previous version of the waiver was issued in the wake of the peace agreement and allowed transactions for 60 days, through Aug. 21.

Oil prices surged following the news, with Brent crude climbing above $75 a barrel and U.S. crude futures jumping to around $72 a barrel after settlement.

The decision came after three ships were attacked in the waterway, apparently by Iran. Tehran has repeatedly said it won’t allow vessels to transit the waterway without its permission.

A U.S. official, speaking under customary condition of anonymity, said Iran will only get the benefits of its deal with the U.S. if it exhibits good behavior. The official said Iran’s actions in the strait were unacceptable and it would face consequences.

But the official said negotiators continue to work in good faith toward a final deal between the adversaries, suggesting the U.S. wasn’t ready to abandon the peace process.

The end of attacks on commercial shipping and the U.S. waiver were central elements of the memorandum of understanding that halted fighting between the U.S. and Iran for 60 days. That deal was meant to create space for more detailed negotiations on the fate of Iran’s nuclear program and the future of the strait.

Iran’s attacks and the revocation of the license “may spell the end of the MOU,” according to Claire O’Neill McCleskey, co-founder of sanctions advisory firm Clarity Compliance Consulting and former head of OFAC’s compliance division.

The spate of attacks is a reminder of the continued risks to ships crossing through Hormuz, even with military forces protecting vessels choosing to cross by a route near Oman’s coastline.

The reversal in the U.S. stance comes just as oil flows and production from the Persian Gulf are starting to approach pre-war levels. U.S. authorization for sales of Iranian oil played a significant role in calming investor worries about supply shortages and helped tame oil prices.

Now, a return to hostilities and renewed threat to energy flows via the critical Strait of Hormuz could once again plunge the global market into renewed volatility.

Global benchmark Brent oil prices touched a peak near $125 a barrel in late April but returned toward pre-conflict levels this month on growing signs of a recovery.

“This is an irrational move by Washington,” said Brett Erickson, managing principal at Obsidian Risk Advisors. “General License X gave Iran a relatively small economic benefit, but revoking it could blow up the entire agreement. That is not leverage. That is strategic self-harm.”

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With assistance from Devika Krishna Kumar and Jennifer A. Dlouhy.

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