Key facts
- The US launched strikes against Iran and reimposed sanctions on its oil sales.
- The actions were in retaliation for Iran's attacks on three commercial vessels near the Strait of Hormuz.
- The US had previously lifted sanctions for 60 days as part of a ceasefire agreement.
- Global oil prices rose following the announcement.
- Buyers of Iranian oil have until July 17 to wind down transactions.
The United States launched new strikes against Iran and reimposed sanctions on its oil sales in retaliation for a series of attacks on commercial ships near the Strait of Hormuz. US Central Command stated its forces "begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway." The US strikes were a response to Iranian attacks on three commercial vessels transiting the Strait of Hormuz, which the US deemed "unwarranted, dangerous, and a clear violation of the ceasefire."
The economic move, in particular, eliminated one of the central concessions made to the Iranian regime in exchange for its reopening of the Strait of Hormuz. A US official stated, "Iran will only reap benefits if they exhibit good behavior." The Treasury Department had initially agreed to lift sanctions on the sale of Iranian oil for 60 days as part of the ceasefire agreement, a move Treasury Secretary Scott Bessent characterized as a show of confidence in "productive talks." This pact had allowed traffic through the strait to increase, contributing to a sharp decline in global oil prices.
The administration did not immediately signal how long the sanctions would be reimposed or under what conditions they would be lifted again. A notice published by the Treasury Department stated that its earlier temporary sanctions relief had been "revoked and superseded in its entirety," giving buyers of Iranian oil until July 17 to wind down any transactions in progress. The actions have jolted global oil prices, with Brent rising 3% to $76 a barrel and US oil surging nearly 6% to above $70.