US blocks Iranian oil sales over ceasefire collapse
Sydney (8 July)
The US Department of the Treasury has banned the purchase and loading of Iranian oil products – by revoking a broad June-issued sanctions waiver – because of escalating violence near the Strait of Hormuz.
But businesses will be able to trade oil to fulfil contracts signed between 21 June and 7 July, Eastern Time, as long as related payments are sent to frozen bank accounts in the US, Treasury said on 8 July.
Treasury’s ban on Iranian oil deals immediately followed multiple attacks on tankers in the Strait of Hormuz.
“Iran recently attacked three commercial vessels transiting the [Strait] including Marshall Islands-flagged M/T Al Rekayyat, Saudi Arabia-flagged M/T Wedyan, and Liberian-flagged M/T Cyprus Prosperity,” US Central Command (Centcom) said on 8 July.
Centcom’s claim aligns with incident reports from the United Kingdom Maritime Trade Operations Centre (UKMTO). Missiles struck two ships and a drone struck another in the Strait of Hormuz on 8 July, UKMTO reports indicate.
The US Government has responded to Iranian attacks in the Strait of Hormuz with a bombing campaign – which targeted over 80 sites, including 60 military boats – and a declaration that the US-Iran Peace Deal is over.
“To me, I think [the deal] is over. I don’t want to deal with them anymore,” US President Donald Trump said at a press conference in Ankara on 8 July. “Far as I’m concerned, it’s just a waste of time dealing with [Iranian negotiators],” Trump added.
Brent crude oil futures prices have increased in recent days because of violence in the Strait of Hormuz. Brent crude oil futures traded at $78.34/barrel on 8 July, up from $71.99/barrel on 6 July, data from Trading Economics show.
By Avinash Govind