The US Treasury Department has reinstated oil sanctions against Iran. The decision comes after Tehran's attacks on civilian merchant vessels in the Strait of Hormuz.
According to information released by the Treasury Department's Office of Foreign Assets Control (OFAC), General License X, which took effect on June 21 and permitted certain operations involving Iranian oil, has been revoked.
In its place, General License X1 has been put into effect, which no longer permits new purchases of Iranian oil and petroleum products or their loading. Companies have been given a transition period until July 17 to execute previously concluded contracts. After that date, all US dollar-denominated transactions related to Iranian oil will be completely halted.
It is noted that the revoked license was part of a temporary agreement reached between Washington and Tehran. Under that agreement, Iran was to ensure the safety of shipping in the Strait of Hormuz, in return for which certain restrictions on the country's oil exports were to be eased.
The US administration believes that recent attacks on civilian merchant vessels in the Strait of Hormuz constitute a violation of the agreement's terms. It is reported that following the incidents, oil prices on the global market rose by more than 5 percent in a short period.