WASHINGTON — The Department of the Treasury revoked a general license authorizing Iranian petroleum sales on Tuesday, dismantling a temporary oil waiver established less than three weeks prior. The Office of Foreign Assets Control terminated the authorization directly in response to Iranian interference with commercial vessels in the Strait of Hormuz over the past day.
A Treasury official stated the Memorandum of Understanding with Tehran is purely transactional and dependent on behavior. "President Trump and the administration have repeatedly affirmed, the MOU in effect with Iran is entirely performance-based," the official said. "Iran will only reap benefits if they exhibit good behavior. Iran's actions in the Strait were wholly unacceptable to the United States and will be met with consequences."
The diplomatic whiplash underscores an adversarial stance that conditions any economic relief on immediate cessation of regional coercion. While American negotiators claim to continue working in good faith toward a final deal, the flow of petrodollars permitting Iranian malign activity has been cut off for the time being, prioritizing American national security interests and the security of global energy shipments that directly affect domestic fuel prices.
An Iranian Foreign Ministry spokesperson blamed commercial vessels using "uncoordinated routes" for disruptions and warned shipping companies against actions violating the pact. The administration rejected this deflection, making clear that Tehran's commitment to safe passage is non-negotiable and its failure to uphold that commitment carries a tangible economic cost.