US imposes fresh sanctions on Iran's military oil sales amid reports of breakthrough in peace deal

Fresh sanctions came amid reports that US and Iranian negotiators had reached a tentative 60-day memorandum of understanding (MoU) aimed at extending the fragile ceasefire and paving the way for formal negotiations on Iran’s nuclear programme.

The United States announced on Thursday that it has imposed fresh sanctions on Iran’s military oil trade, even as Washington and Tehran reached a tentative agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, news agency Reuters reported. 

The US Treasury Department said it had imposed sanctions on eight vessels involved in transporting Iranian crude oil and petroleum products to international markets. Among those targeted were the Marshall Islands-flagged oil tanker Flora, the Comoros-flagged crude carrier Hauncayo, and the Panama-flagged tanker Ill Gap.

"We ​will not allow the Iranian government to increase its oil revenue ​for the purpose of reconstituting its armed forces and military capabilities," Treasury Secretary Scott Bessent said in a release.

The conflict has rattled global markets after the closure of the crucial Strait of Hormuz between Iran and Oman, a key maritime route through which nearly 20 per cent of the world’s oil and gas supplies typically pass.

Meanwhile, in a major diplomatic breakthrough, US and Iranian negotiators have reportedly reached a tentative 60-day memorandum of understanding (MoU) intended to extend the fragile ceasefire and open the door for formal negotiations on Iran’s nuclear programme.

According to an Axios report, the agreement is now awaiting final approval from President Donald Trump, as well as Iran's acceptance.

The United States also imposed sanctions on more than 15 entities, including Hong Kong-based Worth Seen Energy Limited, Dubai-based Symphony Shipping and Maritime Management Inc., and Mehdiyev Trading Co. in Hong Kong.

According to the Treasury Department, several of the sanctioned Iranian entities used the oil sales infrastructure linked to Iran’s armed forces to obtain oil and petroleum products from outside the country. It said Worth Seen Energy Limited, for instance, procured refined petroleum products for the National Iranian Oil Company on behalf of Sepehr Energy Jahan, the oil sales division of Iran’s Armed Forces General Staff, which has previously been targeted by US sanctions.

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The Trump administration has set three non-negotiable conditions for any deal with Iran, Treasury Secretary Scott Bessent said, stressing that Tehran must hand over its highly enriched uranium, renounce any ambition to develop nuclear weapons, and ensure the restoration of unrestricted navigation through the Strait of Hormuz.

While negotiations between the two sides remain ongoing, Bessent repeatedly avoided confirming reports that a tentative agreement had already been reached.

"The teams have been going back and forth," Bessent told reporters during a White House briefing.

He said Trump had made his position clear during a Cabinet meeting a day earlier.

"Iran has to turn over their highly enriched uranium. They cannot pursue a nuclear weapon. And the Strait of Hormuz has to free transit. Navigation of the seas has to be free and open as it was before," Bessent said.

"He's not going to take a bad deal. He's going to make a great deal for the American people."

 Bessent argued that the Trump administration’s combined military and economic pressure campaign had effectively pushed Iran back to the negotiating table.

"President Trump has done something that no other administration is able to do. We have gotten the Iranians to talk about their nuclear program and to perhaps commit to not having one," Bessent said.

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