US revokes Iran oil license after tanker attacks, crude jumps 6%

The Treasury Department revoked Iran's license to sell oil Tuesday and US forces launched retaliatory strikes after three tankers were attacked in the Strait of Hormuz, sending Brent crude up 3% and US oil 6% higher.

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

The Office of Foreign Assets Control issued a new license revoking the June waiver that had authorized Iranian oil sales, giving companies 10 days to wind down transactions with payments directed into blocked US accounts. The Joint Maritime Information Center raised the threat level for Hormuz to "severe," confirming attacks on two tankers and one LNG carrier over the past 48 hours. Two vessels were hit by unknown projectiles and one was struck by a drone.

The Strait of Hormuz handles about 21% of global oil trade, and the escalation threatens to disrupt a peace process that had shown signs of progress last month. The memorandum of understanding signed in June was entirely performance-based, the US official said, and Iran's renewed aggression has now triggered both economic penalties and military retaliation.

The revocation marks a sharp reversal from the June 2026 waiver, which had been set to last until at least Aug. 21. Since that waiver took effect, the NGO United Against Nuclear Iran tracked 43 tankers departing with roughly $4.5 billion in cargo, while TankerTrackers.com reported Iran was loading 6 million barrels of crude at Kharg Island on Tuesday. Treasury Secretary Scott Bessent said last week that China remained the primary purchaser of Iranian oil, as broader buyers stayed wary of potential sanctions reinstatement.

Retaliatory Strikes and a Fragile Peace

CENTCOM said US forces began launching strikes against Iran in response to what it called a "clear violation of the ceasefire." Reports indicated targets ranging from ports to surface-to-air missile sites, anti-ship cruise missile positions, and drone launch locations, with explosions reported near the southern port of Sirik and Bandar Abbas. The strikes are larger and more diverse than previous US responses, which had been limited in scope.

The peace talks have been suspended after earlier reports of progress, though US officials said negotiators continue working in good faith toward a final deal. The talks had paused for the multi-day funeral of Iran's supreme leader, who was killed in the first hours of the conflict. The last time the US and Iran reached a similar ceasefire framework, oil prices fell about 8% over the following two weeks before renewed tensions pushed them back up.

Iran's Foreign Ministry said it was "diligently fulfilling its commitments" under the MOU regarding management of the strait, while the IRGC asserted total authority over the waterway. In a letter to the International Maritime Organization, Iran rejected the UN Convention on the Law of the Seas, saying it was not a party to the treaty and had a sovereign right to oversee shipping in its territorial waters.

Market Fallout

Oil markets reacted sharply, with Brent crude jumping 3% and US crude rising as much as 6% in late trading. Major stock indices retreated as investors priced in a higher geopolitical risk premium. The escalation threatens to reignite inflationary pressures through higher energy costs, with potential knock-on effects on transportation, manufacturing, and consumer prices across the global economy.

The 10-day wind-down period for existing oil transactions provides a narrow window for buyers to adjust, though the requirement that payments be placed in blocked US accounts effectively halts new deals. The previous sanctions regime had cut Iranian oil exports by more than 2 million barrels per day from pre-sanctions levels, and any sustained disruption to Hormuz traffic could tighten global supply significantly.

This article is for informational purposes only and does not constitute investment advice.