The U.S. Treasury Department on Tuesday revoked an authorization from June that allowed Iran to legally export its oil following a series of attacks on tanker ships traveling in the Strait of Hormuz earlier in the day.
The Treasury’s Office of Foreign Assets Control said in a statement that the revoked June license has been replaced with a new authorization that halts any further purchases or loading of Iranian crude oil.
Businesses have until July 17th to “wind down” existing transactions previously authorized under the June license, according to the office.
The shift comes just hours after maritime authorities reported three separate attacks on tanker ships traveling through the Strait of Hormuz.
The United Kingdom Maritime Trade Operations’ center received a report that an early morning attack on the Al Rekayyat took place 8 miles east of Limah, Oman. The unidentified projectile struck the ship’s port side and sparked a fire, though no casualties were reported.
Two other vessels also came under attack in the strait, according to UKMTO.
The first tanker was hit by an unidentified projectile while exiting the strait, 16 miles off the coast of the United Arab Emirates. The ship reached its next port of call without suffering any casualties.
An additional tanker was hit by what UKMTO called a drone 6 miles off Oman’s Musandam Peninsula. The attack caused minor structural damage, but no casualties were reported.
The country of origin and the names of the two additional vessels hit in the waterway have not been released.
In response to the attacks, UKMTO raised its Strait of Hormuz threat level to “severe,” adding that “deliberately hostile action” is likely under the current situation.
“The recent confirmed incidents highlight that the threat environment remains heightened and warrants extreme vigilance. [Iran’s Islamic Revolutionary Guard Corps’] hailing and routing pressure continue, particularly for [automatic identification system]-active vessels,” the agency said in a statement.
It’s unclear if the Treasury’s decision to revoke the oil authorization was in reaction to the attacks in the strait. The Washington Times has reached out to the White House for comment.
Iranian state media reported that the Al Rekayyat was transporting liquefied natural gas from Qatar and was targeted by Iranian authorities after ignoring warnings against traveling in Omani waters through Hormuz.
Spokesperson for Iran’s foreign ministry, Esmaeil Baghaei, said Tuesday that Iran was fulfulling its responsiblities under the Islamabad Memorandum of Understanding and added that commercial ships moving through the strait without assistance from Iranian authorities face serious risks.
Still, the Foreign Ministry of Qatar blamed Iran for the attack on the Al Rekayyat, calling the incident a violation of international law.
“The targeting of the Qatari tanker Al Rekayyat as it was passing near the Strait of Hormuz is an unacceptable attack on the security and safety of international navigation and the security of global energy supplies,” Qatar’s Foreign Ministry spokesperson Majed Al Ansari wrote on X.
Qatar summoned Iran’s deputy ambassador in protest of the attack and called on Iran to halt all activity that could endanger global navigation.
The UAE and Saudi Arabia also blamed Iran for the attacks and condemned them as severe threats to international navigation.
Tehran has consistently said that, while the Strait of Hormuz is open, commercial shipping vessels must travel through Iranian-controlled waters and coordinate with Iran’s military or face severe consequences.
Iranian diplomats are in talks with Oman to hammer out an agreement for governance over the strait. Iran reportedly wants to create a framework that would let authorities impose “service fees” on vessels traveling through the waterway.
The strait was considered international water before the war began in late February, and U.S. officials have insisted they won’t tolerate Iran charging fees on commercial ships.
The attacks are the latest flare-up in Hormuz, a crucial waterway that connects the Gulf of Oman and the Persian Gulf and carries 20% of the world’s annual oil supply.
Under the terms of the memorandum, signed by the U.S. and Iran last month, Tehran must keep the strait open and toll-free for at least 60 days while negotiators hammer out a permanent peace deal.
The agreement also calls for a ceasefire on all fronts and for the U.S. and Iran to begin technical negotiations over Tehran’s nuclear program and sanctions relief.
Shipping has picked up significantly in the strait since the U.S. and Iran signed the memorandum, but traffic is still well below prewar levels. Recent attacks in the waterway are likely to deter commercial shipping companies.
Oil prices jumped almost 2% on Tuesday in reaction to the attacks on the three tankers, with Brent crude futures gaining $1.86 to trade at $72.85 a barrel.
In late June, a commercial vessel was struck by an unidentified projectile while trying to travel through the strait via Omani waters. Iran did not claim responsibility for the attack but was quickly blamed by the U.S., which launched strikes on Iranian military targets shortly after.
Iran retaliated with its own slew of missile and drone attacks on U.S. military installations in the Gulf region.
Iranian and U.S. diplomats met for two days of indirect negotiations last week following the tit-for-tat strikes. Qatari and Pakistani mediators said the talks were productive, but that further direct negotiations would take place after the weeklong funeral for Iran’s slain Supreme Leader Ali Khamenei.
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