I agree that trying to punish him, or make him feel guilty are not the way to have a long term relationship. Here's the deal: some people find oral sex disgusting. And honestly, who blames them. In my own life, I'd rather my husband not give me oral if it disgusted him. Can you consider occasionally, but not that frequently, giving it to him? When couples make plans to hurt or guilt the other, the relationship is doomed.
I am also thinking that in the original description of the problem, you didn't say that your husband told you this and laughed at you, just that he told you this and then you quit smoking, and that now you are withholding oral sex from him. Then at the end you threw that in, about the laughing. Did he actually laugh at you or did you just feel so distressed that you took his comment as scornful?
If he did actually laugh at you (why would he? It's not funny), was he really laughing at you, or was he embarrassed and laughing nervously? If you think he laughed at you and mocked you about this, that is a more significant issue (and a different one) than oral sex.
As Nighthawk says, it's perfectly all right to not have oral sex in a relationship as long as all else is good. So, is the argument really about oral sex? Nobody "makes" someone feel something, they just do what they do and the other person chooses how they feel as a response. If you think he was trying to make you feel bad about yourself, this is a way different discussion than one about whether he wants to give you oral sex and whether you feel like retaliating if he stops.
Oral Sex isn't for everyone. Doesn't need to be a deal breaker if all else is good.
Maybe it is the only way he could think of to get you to quit smoking.