US revokes Iran oil waiver after tanker attacks in Strait of Hormuz
WASHINGTON - The Trump administration revoked a waiver that authorized the sale of Iranian oil as part of a memorandum of understanding with Tehran, jeopardizing the preliminary peace deal between the two countries.
The Treasury Department's July 7 revocation of the oil license is in response to renewed hostilities near the Strait of Hormuz, where three tankers in recent days were hit by projectiles along the critical waterway for oil exports from Iran.
A U.S. official confirmed the administration's response, adding that the 14-point memorandum signed by Trump and Iranian leaders in June is "entirely performance-based" and that Iran will only reap the benefits if they follow its terms.
Although Iran has not accepted responsibility for the attacks, the U.S. official said Iran's actions in the strait are unacceptable and will be met with consequences. Still, the official said the United States and Iran continue to work in good faith towards a final deal.
Crude oil prices spiked nearly 6% after the Trump administration revoked the oil license, with Brent crude nearing $76 a barrel.
The action risks escalating tensions while the United States and Iran negotiate on a long-term peace agreement that addresses Iran's nuclear capacity.
Removing restrictions on Iran's ability to sell oil ‒ which accounts for more than half of the country's export revenue but has long faced U.S. sanctions ‒ was a major U.S. concession in Trump's preliminary agreement with Iran. The now-revoked waiver would have allowed the production, delivery and sale of crude oils from Iran through Aug. 21.
Under the MOU, the United States would also lift all sanctions on Iran and unfreeze its assets, but only if Iran follows through on commitments not to develop nuclear weapons and to dispose of highly enriched uranium in a final agreement the Trump administration hopes in two months.
The MOU is on shaky ground, however. In June, U.S. forces carried out strikes on targets in Iran in response to an Iranian attack on a commercial ship trying to pass through the Straight of Hormuz. Trump called Iran's attack a "foolish violation" of the ceasefire.
Contributing: Reuters
Reach Joey Garrison on X @joeygarrison.
This article originally appeared on USA TODAY: US revokes Iran oil waiver after tanker attacks in Strait of Hormuz
Reporting by Joey Garrison, USA TODAY / USA TODAY
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Copyright Reuters or USA Today Network via Reuters Connect
This story was originally published July 7, 2026 at 5:49 PM.