The United States initiated military strikes against Iran and withdrew a temporary license allowing Iran to sell oil, following attacks on three commercial vessels in the Strait of Hormuz. This action marks a significant escalation, potentially unraveling a fragile ceasefire established last month between the U.S. and Iran. U.S. Central Command confirmed military operations were underway to impose "heavy costs" on Iran for targeting commercial shipping, with reports indicating strikes targeting air defense systems, coastal surveillance facilities, and drone positions.
The revocation of the oil waiver, initially granted under an interim agreement in June, ends Iran's ability to sell crude oil and petroleum products on international markets. The U.S. Treasury Department's Office of Foreign Asset Control's decision impacts a 60-day general license issued on June 21, which allowed such sales until August 21. Iran has until July 17 to wind down existing transactions. This move, which saw oil prices rise by more than 3% to 5%, reverses a key sanctions-relief measure that had aimed to stabilize global oil prices and encourage progress toward a permanent peace agreement.
The attacks in the Strait of Hormuz, a crucial waterway for approximately one-fifth of the world's oil supply, involved a Qatari LNG tanker, a Saudi crude oil tanker, and another vessel. Qatar and Saudi Arabia have condemned the attacks, with Qatar holding Iran responsible. The U.S. military stated that Iran's actions were "unwarranted, dangerous, and a clear violation of the ceasefire." Iran's foreign ministry, however, condemned the U.S. response as a breach of the framework agreement and warned of consequences, highlighting the risk of derailing ongoing negotiations for a long-term peace deal.
