Iran's Ministry of Foreign Affairs on Wednesday, 8 July issued a sharp condemnation of the United States' decision to revoke the temporary suspension of sanctions on Iranian oil sales, calling it a 'gross violation' of Article 10 of the Islamabad Memorandum of Understanding (MoU) signed on 18 June — and holding Washington directly responsible for the consequences. The reversal came less than 20 days after the agreement was signed, dramatically escalating an already fragile diplomatic situation.

What Iran Said

In an official statement, Iran's Ministry of Foreign Affairs said the US Treasury's move to lift the temporary suspension of the embargo on Iranian oil sales was 'a gross violation of Article 10 of the Memorandum of Understanding to End the War,' and that Tehran holds 'the US government responsible for the consequences of this breach of promise.'

The Ministry described the reversal as evidence of Washington's 'malicious intentions, instability, and unreliability.' It further alleged that the United States had repeatedly violated various provisions of the memorandum — either directly or, as the statement put it, 'through the actions of the Zionist regime against Lebanon.'

Iran's Compliance Claims

According to the Ministry, Iran had acted in good faith since the 18 June signing, deploying 'all its capabilities' to fulfil its obligations under the agreement. 'The Islamic Republic of Iran has tried in good faith and using all its capabilities to fulfil its obligations… However, the US government, as usual, has simultaneously violated its obligations and sought to justify them with various excuses,' the statement said.

The Ministry warned that Tehran reserves the right to take 'any action it deems necessary to protect its interests and national security' in response to what it characterised as America's breach of the accord.

US Strikes Follow Hormuz Attacks

The diplomatic rupture was accompanied by military action. US forces launched strikes against Iran after three commercial ships transiting the Strait of Hormuz were attacked, according to US Central Command, which said in a post on X that it had 'begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway.'

The command confirmed the strikes were 'in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz.' Explosions were subsequently reported near Qeshm Island and the port cities of Bandar Abbas and Sirik, according to Iranian state outlet Press TV.

Context and What Comes Next

The Islamabad MoU, signed on 18 June, had been seen as a rare diplomatic opening between Tehran and Washington. Its rapid unravelling — with sanctions reinstated within three weeks and military strikes following — marks one of the sharpest single-week deteriorations in US-Iran relations in recent memory. This comes amid long-standing tensions over Iranian oil exports, nuclear negotiations, and regional proxy conflicts.

With Tehran explicitly reserving the right to retaliate and US Central Command already conducting strikes, the situation in and around the Strait of Hormuz — through which a significant share of global oil supply transits — remains acutely volatile. International observers and energy markets will be watching closely for further escalation.