US cancels waiver allowing Iran oil sales as Gulf vessels attacked
The Trump administration on Tuesday revoked a licence that temporarily lifted oil sanctions on Iran after several vessels came under attack in the Gulf, removing the main economic incentives that saw it agree to an end to the war in the Middle East.
The Trump administration made the decision after Qatar and Saudi Arabia said their vessels came under attack from Iran.
Brent, the international benchmark, jumped nearly five percent amid the rising tensions.
"Iran's actions in the strait were wholly unacceptable to the United States and will be met with consequences," a US official told AFP, referring to a series of attacks in the Gulf.
The US’s decision to waive sanctions on Iran was a major sticking point in negotiations between the two sides.
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The waiver originally allowed the Islamic Republic to produce, sell and deliver crude oil and related products through 21 August. The US tied sanctions relief to progress in talks over a permanent end to the war.
But on Tuesday, three tankers in the Strait of Hormuz were attacked within a few hours, including a Qatari LNG vessel, according to maritime monitors and Qatar.
Qatar denounced an attack on one of its LNG tankers and summoned Iran's deputy ambassador to lodge a complaint. The vessel was transiting off the coast of Oman when it was attacked by the Islamic Republic, Doha said.
The Qatari foreign ministry said in a statement that it demanded an explanation for the incident and called on Iran to "immediately cease any practices undermining regional security and to refrain from endangering the safety of international shipping and global energy supplies".
A Saudi-flagged crude oil tanker was also hit in the same area, according to the kingdom.
The Saudi foreign ministry blamed Iran in a statement.
Iran has not claimed responsibility for the attacks but is locked in a standoff over efforts to impose a toll in the waterway.
Tehran has chafed at vessels bypassing its territorial waters in favour of a southern route through Oman’s waters in recent days.
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