The Trump administration has revoked a temporary authorization that allowed the sale of Iranian oil, signaling a swift response to a series of attacks on commercial vessels near the strategically vital Strait of Hormuz.
The decision, announced Tuesday by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), effectively cancels General License X, a 60-day authorization that had temporarily eased restrictions on Iranian oil exports. The license was originally issued on June 22 as part of an interim Memorandum of Understanding between the United States and Iran designed to reduce tensions and restore confidence in one of the world’s most important shipping lanes.
The agreement was intended to create a pathway toward broader negotiations while ensuring the safe movement of commercial vessels through the Strait of Hormuz. Under General License X, companies were permitted to engage in transactions involving Iranian crude oil, petroleum products, and petrochemicals. The authorization also covered certain banking, insurance, and logistical activities connected to those sales.
However, less than three weeks after the agreement was reached, a string of attacks on commercial shipping has dramatically altered the situation.
According to maritime security reports from the United Kingdom Maritime Trade Operations and the Joint Maritime Information Center, multiple vessels were struck by projectiles while operating in or near the Strait of Hormuz and surrounding waters off Oman.
Among the vessels damaged was the Qatari liquefied natural gas tanker Al Rekayyat, which reportedly suffered an engine-room fire that raised fears of a possible explosion. A Saudi-flagged supertanker, the Wedyan, also sustained damage, while another tanker was reportedly struck by a drone but remained operational and continued toward its destination.
The incidents prompted the Joint Maritime Information Center to raise its threat assessment for vessels transiting the strait from “substantial” to “severe.” Maritime authorities advised shipping operators to exercise extreme caution as traffic through the region noticeably declined following the attacks.
A U.S. official familiar with the administration’s decision emphasized that the agreement with Iran was always contingent on performance.
“The Office of Foreign Assets Control is revoking GL X, which authorized the sale of Iranian oil,” the official told the New York Post. “As President 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 official added that the attacks were “wholly unacceptable” and would carry consequences, while stressing that American negotiators continue working toward a broader agreement.
Iran has denied responsibility for the incidents and did not claim involvement in the attacks. An Iranian Foreign Ministry spokesperson argued that vessels operating outside coordinated routes or interfering with tracking systems increase risks in the region. The spokesperson maintained that Iran remains committed to its obligations under the memorandum and continues efforts to ensure safe navigation.
Qatar and Saudi Arabia have taken a far less charitable view. Both governments attributed responsibility for the attacks to Iran and lodged formal diplomatic protests.
The revocation of General License X means restrictions on Iranian oil exports are once again fully in place. Before the June agreement, Iran’s oil sector operated under extensive U.S. sanctions that severely limited access to global markets.
For the Trump administration, the message appears straightforward: economic relief was available only so long as stability in the Strait of Hormuz was maintained. With commercial vessels once again coming under attack, Washington has decided that Tehran has not earned those benefits.
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