Oil prices on Tuesday jumped over 5 percent after the U.S. revoked its waiver on Iranian oil sanctions following strikes on three commercial vessels near the Strait of Hormuz.

International Brent crude oil jumped nearly 5.5 percent to more than $75 per barrel as of Tuesday evening.

A U.S. official previously told The Hill that the memorandum of understanding (MOU) intended to pause hostilities between the U.S. and Iran “is entirely performance-based.”

“Iran will only reap benefits if they exhibit good behavior,” the official said “Iran’s actions in the Strait were wholly unacceptable to the United States and will be met with consequences.”

The price increase comes after the Treasury Department issued a new document stating that transactions that were authorized under its previous sanctions waiver would have to wind down by July 17. The waiver would have previously allowed sales of Iranian oil through Aug. 21. This waiver was part of the MOU.

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