The Trump administration moved Tuesday to reinstate sanctions targeting Iranian oil and petrochemical sales, following reports that Tehran carried out attacks on three vessels near the Strait of Hormuz.
The Treasury Department withdrew a sanctions waiver first issued on June 21, which had briefly permitted certain transactions tied to Iranian crude oil, petroleum products, and petrochemicals. Under the revised directive, businesses must wind down any activity covered by the prior authorization by July 17. The waiver had originally been scheduled to run until Aug. 21.
That waiver was part of a ceasefire memorandum of understanding between Washington and Tehran after months of hostilities. According to a U.S. official, the arrangement was conditioned from the start on Iran’s conduct. The official said the reported attacks near the Strait of Hormuz breached the understanding and led the administration to bring sanctions back into force.
Even so, the official said talks aimed at reaching a wider agreement with Iran have not been abandoned.
The Treasury Department’s updated license states that, after July 7, no new purchases, loading operations, or sales involving Iranian oil or petrochemical products are allowed. Only narrowly defined wind-down activities may continue until July 17. Any transactions involving other sanctioned jurisdictions, or activities prohibited under separate U.S. sanctions programs, remain off-limits.
President Donald Trump told reporters Monday the administration was making progress toward an agreement with Iran but said the military was prepared to act if diplomatic efforts broke down.
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“We’re either going to make a deal or we’re going to finish the job,” Trump said. “And it won’t be tough to finish the job.”
Trump said his preference remains a negotiated settlement rather than measures that would harm ordinary Iranians.
“I’d rather make a deal because I don’t want to affect 91 million people,” he said. “We can knock down their bridges in one hour. We can knock out their energy supply.”
Tehran responded by accusing the United States of breaking the ceasefire memorandum of understanding after Washington restored the sanctions and later carried out military strikes. Iran’s Foreign Ministry said it would take “decisive measures” to safeguard the country’s national interests and security.
Earlier Tuesday, U.S. forces carried out what the military called a series of “powerful strikes” against Iran after Tehran allegedly attacked three commercial ships passing through the Strait of Hormuz. U.S. Central Command said the attacks violated the ceasefire agreement.
