The U.S. Treasury Department reimposed sanctions on the export of Iranian oil on Tuesday, removing one of the largest benefits Iran received under the memorandum of understanding between the two countries.
The department revoked its General License X from June 21, which waived nearly a dozen sanctions packages and authorized the regime to produce, deliver and sell “crude oil, petrochemical products and petroleum products of Iranian-origin” for 60 days without restriction.
The move comes after Iran fired two missiles at a pair of commercial ships transiting the Strait of Hormuz between Iran and Oman. The attack reportedly caused significant damage to the vessels but no casualties.
Iran’s position that it has the right to control and potentially charge tolls on shipping through the vital energy corridor has been one of the largest sticking points in negotiations with the United States before and since the signing of the memorandum of understanding to end the war between the two countries.
Officials from the Trump administration have insisted that the deal would be “performance-based” and that any benefits Iran received, including unfrozen Iranian assets and lifted sanctions, could be revoked at any time.
The new order from the Treasury Department to “wind down” the previous license allows Iran to proceed with any sales already underway until July 17, creating a 10-day window in which the United States and Iran could try to resolve the dispute.
