Oil prices jump 5 percent after U.S. revokes Iran oil sanctions waiver
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Oil prices on Tuesday jumped over 5 percent after the U.S. revoked its waiver on Iranian oil sanctions following strikes on three commercial vessels near the Strait of Hormuz.
International Brent crude oil jumped nearly 5.5 percent to more than $75 per barrel as of Tuesday evening.
A U.S. official previously told The Hill that the memorandum of understanding (MOU) intended to pause hostilities between the U.S. and Iran “is entirely performance-based.”
“Iran will only reap benefits if they exhibit good behavior,” the official said “Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences.”
The price increase comes after the Treasury Department issued a new document stating that transactions that were authorized under its previous sanctions waiver would have to wind down by July 17. The waiver would have previously allowed sales of Iranian oil through Aug. 21. This waiver was part of the MOU.
Iran’s Deputy Foreign Minister Kazem Gharibabadi said revoking the waiver violated the MOU. He accused the U.S. of repeatedly violating the MOU “due to the actions of the Zionist regime in Lebanon and threatening statements against Iran,” referring to Israel defiantly keeping its military in Lebanon and not withdrawing troops.
“Iran, while issuing a serious warning regarding the consequences of America’s breach of the agreement, will take decisive actions to safeguard its national interests and security,” he wrote on the social platform X.
The attacks on the three ships prompted U.S. Central Command (Centcom) to launch attacks back at Iran on Tuesday after the U.K. Maritime Trade Operations, which is affiliated with the British Royal Navy, said on Monday a commercial tanker caught fire after being struck by a projectile.
Qatar also blamed Iran for an attack on Al-Rejayyat, a Qatari liquified natural gas vessel, and accused the regime of violating international law.
Iran has held a massive funeral procession across several cities as mourners lay to rest former Supreme Leader Ayatollah Ali Khamenei, who was killed by some of the initial strikes launched by the U.S. and Israel on Iran on Feb. 28.
The Islamic regime has asserted its control over the strait, a critical chokepoint between the Persian Gulf and the Gulf of Oman that carries roughly 20 percent of the global oil and gas exports.
Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Read the full story at The Hill ↗
The U.S. Treasury Department revoked a sanctions waiver on Iranian oil transactions, requiring wind-down by July 17 instead of the previously authorized August 21 deadline. This followed strikes on three commercial vessels in the Strait of Hormuz. International Brent crude oil increased approximately 5.5 percent to over $75 per barrel. Iran's Deputy Foreign Minister characterized the revocation as a breach of the memorandum of understanding between the two countries and stated Iran would take action to safeguard its interests. The U.S. responded with retaliatory strikes via Central Command after the attacks on the vessels.
Read the full story at The Hill ↗
Skip to content
Oil prices on Tuesday jumped over 5 percent after the U.S. revoked its waiver on Iranian oil sanctions following strikes on three commercial vessels near the Strait of Hormuz.
International Brent crude oil jumped nearly 5.5 percent to more than $75 per barrel as of Tuesday evening.
A U.S. official previously told The Hill that the memorandum of understanding (MOU) intended to pause hostilities between the U.S. and Iran “is entirely performance-based.”
“Iran will only reap benefits if they exhibit good behavior,” the official said “Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences.”
The price increase comes after the Treasury Department issued a new document stating that transactions that were authorized under its previous sanctions waiver would have to wind down by July 17. The waiver would have previously allowed sales of Iranian oil through Aug. 21. This waiver was part of the MOU.
Iran’s Deputy Foreign Minister Kazem Gharibabadi said revoking the waiver violated the MOU. He accused the U.S. of repeatedly violating the MOU “due to the actions of the Zionist regime in Lebanon and threatening statements against Iran,” referring to Israel defiantly keeping its military in Lebanon and not withdrawing troops.
“Iran, while issuing a serious warning regarding the consequences of America’s breach of the agreement, will take decisive actions to safeguard its national interests and security,” he wrote on the social platform X.
The attacks on the three ships prompted U.S. Central Command (Centcom) to launch attacks back at Iran on Tuesday after the U.K. Maritime Trade Operations, which is affiliated with the British Royal Navy, said on Monday a commercial tanker caught fire after being struck by a projectile.
Qatar also blamed Iran for an attack on Al-Rejayyat, a Qatari liquified natural gas vessel, and accused the regime of violating international law.
Iran has held a massive funeral procession across several cities as mourners lay to rest former Supreme Leader Ayatollah Ali Khamenei, who was killed by some of the initial strikes launched by the U.S. and Israel on Iran on Feb. 28.
The Islamic regime has asserted its control over the strait, a critical chokepoint between the Persian Gulf and the Gulf of Oman that carries roughly 20 percent of the global oil and gas exports.
Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Read the full story at The Hill ↗
Oil prices jumped over 5 percent on Tuesday, with International Brent crude rising 5.5 percent to above $75 per barrel The U.S. revoked its sanctions waiver on Iranian oil following strikes on three commercial vessels near the Strait of Hormuz The Treasury Department issued a new document requiring transactions authorized under the previous waiver to wind down by July 17 instead of August 21 Iran's Deputy Foreign Minister claimed the waiver revocation violated the memorandum of understanding between the countries A U.S. official stated Iran's actions in the strait were wholly unacceptable and would be met with consequences Iran warned it would take decisive actions to safeguard its national interests and security
Read the full story at The Hill ↗
- U.S. revoked its sanctions waiver on Iranian oil, effective July 17, shortening the previous wind-down period from August 21
- Oil prices rose over 5 percent following the revocation and strikes on three commercial vessels near the Strait of Hormuz
- Iran's Deputy Foreign Minister stated the waiver revocation violated their memorandum of understanding and warned of consequences
- U.S. Centcom launched retaliatory strikes after vessels were struck by projectiles in the strait