The United States has reinstated sanctions on Iran, effectively ending a temporary waiver that allowed Tehran to sell oil openly for the first time in decades. This development comes just weeks after a memorandum of understanding (MOU) was signed between the two countries, which included provisions for the sanctions waiver, a cease-fire, and Iran’s reopening of the strategic Strait of Hormuz.

The waiver, initially set to remain in effect until August 21, had provided Iran with much-needed economic relief after enduring months of a U.S. blockade on its ports alongside longstanding sanctions. Under the waiver, Iran was permitted to sell oil at market rates rather than through clandestine, discounted deals, potentially generating up to $10 billion in revenue over the two-month period.

Iran’s Foreign Ministry condemned the U.S. decision to reimpose sanctions and criticized related airstrikes as a “gross violation” of the agreement. Officials warned of repercussions, stating that Tehran will take any measures it deems necessary to safeguard its national security and interests. The ministry also described the rollback of the waiver as indicative of “ill intentions, instability and unreliability” on the part of the U.S. government.

A separate Iranian source indicated the move could jeopardize future diplomatic efforts, including a tentative round of negotiations scheduled for Saturday. Despite these tensions, a U.S. official emphasized that American negotiators remain committed to working in good faith toward a comprehensive final agreement.

The sanctions and the associated waiver had been key components in de-escalating tensions and creating a pathway for renewed dialogue. The abrupt reversal underscores the fragile nature of the current rapprochement and raises questions about the prospects for sustained diplomatic progress between the two nations.