The United States has revoked a license that authorized the sale of Iranian oil, a significant reversal of a provision within a memorandum of understanding signed between the two nations last month. A U.S. official cited recent escalations in the Strait of Hormuz as the reason for this decision, characterizing Iran's actions as "wholly unacceptable."

"The Office of Foreign Assets Control is revoking GL X, which authorized the sale of Iranian oil. As President Trump and the administration have repeatedly affirmed, the MOU in effect with Iran is entirely performance-based. Iran will only reap benefits if they exhibit good behavior," the official stated. "Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences."

This revocation comes in the wake of three commercial ships being attacked in the Strait of Hormuz since Monday. According to two U.S. officials, Iran fired at least two missiles at commercial vessels overnight. A third tanker was reportedly struck on Tuesday, according to the UK Maritime Trade Operations.

The Treasury Department confirmed that the license is "revoked and superseded in its entirety," effective Tuesday. The department will permit a wind-down grace period until July 17 for transactions previously authorized under the license.

The memorandum of understanding, which had taken effect on June 18, included the provision that "immediately upon signing," the Treasury Department would issue waivers allowing the export of Iranian crude. Although the MOU became effective in mid-June, the license permitting the sale of Iranian oil was not officially issued until June 22. This license was intended to be waived for a 60-day period, through August 21.

The ability to sell oil had been considered a significant financial gain for Iran, which has faced years of oil sanctions. Despite the license revocation, a U.S. official noted that peace talks between the U.S. and Iran are continuing, with negotiators working in good faith toward a final agreement.

The revocation of the license was first reported by Reuters.