The United States decided on Tuesday to revoke the general license authorizing the sale of Iranian oil after several Iranian attacks on ships in the Strait of Hormuz.
A senior administration official called Iran's actions in the Strait "wholly unacceptable" and said they will be met with consequences.
The official reiterated, "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."
Earlier, three tankers reported being hit by Iranian missile fire in the Strait of Hormuz and a nearby area. One of the vessels struck by Iranian missiles was a Qatari-owned liquefied natural gas tanker. In response, Qatar summoned the Iranian ambassador for a formal reprimand.