US revokes license authorizing sale of Iranian oil after strikes in Strait of Hormuz

The US on Tuesday revoked a license authorizing the sale of Iranian oil under a deal with Tehran, the Treasury Department said, following recent Iranian strikes near the Strait of Hormuz.

“The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is revoking Iran-related General License X,” which allowed the production, delivery and sale of Iranian oil, the department said in a statement.

Financial news broadcaster CNBC quoted a US official as saying: “As President (Donald) Trump and the administration have repeatedly affirmed, the MOU (memorandum of understanding) in effect with Iran is entirely performance-based.”

A US official told CNBC on Tuesday that “as President (Donald) Trump and the administration have repeatedly affirmed, the MOU in effect with Iran is entirely performance-based.”

“Iran will only reap benefits if they exhibit good behavior,” the unnamed official reportedly said. “Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences.”

The move came after three commercial vessels were struck in recent days by Iranian missiles while transiting near the Strait of Hormuz, causing significant damage but no casualties.

The strait is one of the world’s most important energy chokepoints, carrying a significant share of global oil and liquefied natural gas exports from Gulf producers.