Oil prices jump as US pulls Iran waiver over tanker attacks
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Oil prices rose sharply on Monday after the United States revoked a sanctions waiver allowing Iran to sell crude, following reported attacks on tankers in the Strait of Hormuz. Brent crude climbed above $82 a barrel, up 3.2%, while West Texas Intermediate gained 3.5%. The move escalates tensions in the key shipping lane, which handles about a fifth of global oil supply.
The Waiver Revocation
The U.S. State Department confirmed on Sunday it had withdrawn a six-month waiver that allowed Iraq to import Iranian electricity and natural gas without facing sanctions. The decision came after what U.S. officials described as Iranian-linked attacks on two commercial tankers near the Strait of Hormuz on Thursday. No casualties were reported, but one vessel sustained hull damage.
Market Reaction
Brent crude futures settled at $82.45 a barrel, the highest since April, while WTI closed at $78.90. Analysts at Goldman Sachs said the move could remove up to 500,000 barrels per day from global markets if Iraq fails to secure alternative supplies. The Strait of Hormuz remains a chokepoint, with about 17 million barrels per day transiting it.
What's Next
The U.S. is expected to announce additional sanctions on Iranian entities later this week. It remains unclear whether Iran will retaliate by disrupting tanker traffic through the Strait, which could push oil prices above $90.
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Oil prices jump as US pulls Iran waiver over tanker attacks
