U.S. Revokes Iran Oil Waiver
U.S. Revokes Iran Oil Waiver after Treasury rescinded a license and U.S. strikes; traders repriced Strait of Hormuz supply risk and boosted oil hedging.
KEY TAKEAWAYS
- OFAC revoked the general license authorizing Iranian oil and petrochemical transactions, reinstating full U.S. sanctions.
- OFAC allowed wind-down of existing transactions through July 17 and barred new Iranian oil loadings after July 7.
- CENTCOM said U.S. forces launched strikes on Iran, prompting markets to reprice Strait of Hormuz shipping risk.
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The U.S. revoked a temporary Treasury license authorizing Iranian oil sales and, on July 7, U.S. Central Command said it launched strikes on Iran after attacks on commercial vessels. These moves pushed oil futures sharply higher by raising risk to shipments through the Strait of Hormuz.
OFAC Revokes Iran Oil Waiver
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) canceled the general license that had allowed specified transactions involving Iranian crude oil, petroleum products, and petrochemicals, reinstating full U.S. sanctions on those exports. The license, issued on June 21, 2026, as part of a performance-based memorandum of understanding (MoU), had been scheduled to remain in effect through August 21, 2026.
The revocation includes a wind-down period permitting companies to terminate existing authorized transactions by July 17, 2026, but bars new purchases or loading of Iranian crude, petroleum products, or petrochemicals after July 7. U.S. officials linked the revocation to recent attacks on commercial vessels transiting or near the Strait of Hormuz, framing it as enforcement of the MoU’s performance conditions.
U.S. Strikes Iran and Oil Market Reaction
U.S. Central Command announced that U.S. forces have begun launching a series of powerful strikes against Iran to impose costs for targeting and attacking commercial vessels. At least three commercial vessels were struck in or near the Strait of Hormuz, including two tankers and one liquefied natural gas (LNG) carrier. Identified vessels include the Qatari LNG tanker Al Rekayyat, which suffered an engine-room fire, and a Saudi-flagged crude tanker. Reports indicated no casualties.
Maritime and security sources cited missiles and drones in the attacks and attributed them to Iran’s Islamic Revolutionary Guard Corps. Iran has not formally claimed responsibility; state media suggested one vessel ignored warnings.
Oil futures rose sharply after the announcements, with U.S. benchmark contracts jumping nearly 3% in early trade as markets repriced heightened risk to global supply and transit through the Strait of Hormuz. Market commentary framed the combined Treasury action and military strikes as tightening sanctions and increasing geopolitical risk premia in oil benchmarks, intensifying investor focus on supply security through the strait.
