US Revokes Iran Oil Waivers After Strait of Hormuz Tanker Attacks

The Trump administration has yanked the sanctions waiver that briefly allowed Iranian oil to flow legally, and crude reacted immediately. The Treasury Department announced Tuesday that it revoked the temporary waivers issued as part of the memorandum of understanding with Iran that had allowed Tehran to sell oil. Oil prices rose more than 5% following the announcement.

What Happened

The revocation, of waivers issued less than three weeks ago, came in response to renewed Iranian attacks against ships in the Strait of Hormuz over the past 24 hours. The British military said three tankers in the strait were hit by projectiles on Tuesday, the most in a single day since late April. One natural gas tanker caught fire after it was hit off Oman, while the other two sustained minor damage and were able to continue.

A Treasury document says that transactions authorized under the previous waiver would have to wind down by July 17. The waiver would otherwise have allowed sales of Iranian oil through Aug. 21.

Why the Deal Is Fraying

Treasury Secretary Scott Bessent had said the temporary license was issued due to Iran’s commitments under the MOU, including guaranteeing safe passage through the Strait of Hormuz and inviting international nuclear inspectors back into the country — a claim Iran swiftly denied.

Iran, for its part, promised ships safe passage through Hormuz under the deal, but Tehran has since insisted that vessels must use a northern route under its control. It has attacked ships that use a U.S. Navy protected route along Oman’s coast. Ships are avoiding the traditional route through the center of Hormuz because Iran mined it.

Do you want to see how to make more plays? Do you want to find gains yourself?

Unusual Whales helps you find market opportunities through our market tide, historical options flow, GEX, and much, much more.

Create a free account here to start conquering the market with Unusual Whales.

The Market Angle

The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most important energy chokepoints, with roughly a fifth of global oil consumption and large volumes of liquefied natural gas shipments passing through each day. Any sustained disruption gets priced into crude fast.

The Joint Maritime Information Center raised the threat level for ships crossing Hormuz to “severe,” warning that hostile action by Iran is likely. That is the kind of language that keeps a war premium in the tape.

Diplomatic Backdrop

A U.S. official said negotiators continued to work in good faith toward a final agreement with Iran despite the latest escalation. Still, the attacks and the U.S. response threaten to put a fragile diplomatic understanding on shaky ground, raising the risk that further retaliation could derail negotiations over a broader agreement — one that had included limits on Iran’s nuclear program and relief from some sanctions.

Options market and stocks to watch

Energy names and tanker operators are the obvious tape to watch as the Hormuz situation escalates.

• XOM: Watch for follow-through if crude holds the Hormuz premium; integrated majors are the first stop for macro oil flow.
• CVX: Similar setup to XOM, with added Middle East exposure worth monitoring.
• USO: The cleanest proxy for spot WTI moves tied to the headline.
• FRO: Frontline and other tanker names tend to move on rate spikes when Hormuz routing gets messy.
• LNG: Cheniere and LNG-linked names are in play given the LNG tanker was among those hit.

For more market-moving headlines, check other news.

Want more market intelligence? Create your free Unusual Whales account for options flow, market tide, GEX, and the full toolkit.