Oil prices jump as Iran attacks vessels in Hormuz strait, US revokes license allowing Iran to sell oil

July 8, 2026 - 03:15

Oil prices jumped sharply on Tuesday following a series of attacks by Iranian forces targeting vessels in the Strait of Hormuz. The escalation prompted the US Treasury Department to revoke a previously issued license that had allowed Iran to sell its crude oil on international markets.

The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Gulf of Oman, is a critical chokepoint for global oil shipments. Roughly one-fifth of the world's petroleum passes through it daily. The attacks, which damaged at least two commercial tankers, raised immediate fears of supply disruptions. Traders responded by driving benchmark crude prices up by more than four percent in early trading.

The US decision to revoke the license marks a significant shift in policy. The license had been part of a broader effort to ease sanctions in exchange for limits on Iran's nuclear program. With the revocation, Iran loses access to billions of dollars in oil revenue. Analysts say the move is likely to tighten global supply further, especially as other major producers have already announced production cuts.

Iranian officials defended the attacks, calling them a response to what they described as provocations by foreign naval forces in the region. The US Navy's Fifth Fleet, based in Bahrain, has increased patrols in the area. No casualties have been reported from the strikes, but shipping companies have begun rerouting vessels or delaying departures.

The combination of military action and sanctions has left oil markets on edge. Some experts warn that if the situation escalates, prices could climb even higher in the coming weeks.