Key facts
- The Trump administration has reinstated sanctions on Iran's oil sales.
- A waiver previously granted to Iran has been revoked.
- The decision was attributed to Iran's actions in the Strait of Hormuz.
- Companies have 10 days to cease ongoing transactions.
- Payments for transactions must be made into a U.S. blocked account.
- The threat level for the Strait of Hormuz has been assessed as 'severe'.
The Trump administration has reinstated sanctions on Iran's oil sales, revoking a previously granted waiver. A U.S. official stated that Iran's actions in the Strait of Hormuz were "wholly unacceptable to the United States" and that the waiver was performance-based, meaning Iran would only benefit from good behavior.
Negotiations toward a long-term peace agreement are reportedly continuing in good faith. The new license provides companies with a 10-day period to wind down any transactions already in progress, with payments required to be made into a blocked account in the United States. The license was signed by Bradley Smith, director of the Office of Foreign Assets Control.
Separately, the Joint Maritime Information Center issued an advisory Tuesday classifying the threat level for the Strait of Hormuz as "severe" due to recent attacks. The U.K. Maritime Trade Operations Center reported receiving accounts from three tankers attacked in the Strait over the preceding two days, with two being hit by "unknown projectiles" and one struck by a drone.