Oil jumps after settlement as US revokes general license for Iran oil sales
FILE PHOTO: A pumpjack, used to help lift oil from a well, in the Permian basin near Midland, Texas, U.S., October 8, 2025. REUTERS/Arathy Somasekhar/File Photo
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NEW YORK, July 7 : Oil prices settled 3 per cent higher on Tuesday and then extended gains post-settlement, after the U.S. revoked the general license that authorized the sale of Iranian crude oil. Reports of attacks on vessels near the Strait of Hormuz also revived fears of disruptions to tanker shipping.
Brent crude futures settled up $2.17, or 3.01 per cent, to $74.16 a barrel, while U.S. West Texas Intermediate crude rose $1.89, also 2.76 per cent, to $70.44 a barrel.
In post-settlement trade, the global benchmark climbed 96 cents to $75.12 and WTI jumped $1.05 to $71.49 at 3:00 p.m. ET after the U.S. revoked a general license that authorized the sale of Iranian oil. Both benchmarks were up more than 4 per cent from the previous day’s settlement prices.
The U.S. warned that Iran’s actions in the Strait of Hormuz were “wholly unacceptable” and would be met with consequences after attacks on tankers in the strategic waterway, a U.S. official said on Tuesday.
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The U.S. move came after three tankers were hit in the Strait of Hormuz on Tuesday, including a Qatari liquefied natural gas carrier that Qatar said was struck by an Iranian drone.
A Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, was also damaged off Oman. The cause was not immediately clear.
“This shows just how fragile the ceasefire actually is. Further attacks could sporadically appear in the coming months and this will further add to the volatility,” said Ajay Parmar, director of energy and refining at ICIS. “Just one disagreeable message from one side could bring anger to the other, and remember if Iran merely threatens to close the Strait of Hormuz again, prices will spike considerably. As such, we firmly believe that volatility really is here to stay.”
“Renewed tensions in the Middle East and concerns over the vessel attacks could drag lower oil exports from the Middle East,” UBS analyst Giovanni Staunovo said.
Talks to reach a final deal between Tehran and Washington will not take place if U.S. threats continue, Iran’s foreign minister said on Tuesday, following U.S. President Donald Trump’s threat to “finish the job” unless a deal is done.
Investors are monitoring talks between the U.S. and Iran and their implications for shipping through the Strait of Hormuz, which prior to the beginning of the Iran war carried a fifth of the world’s daily supply of oil and LNG.
Also on Tuesday, Kyiv’s military said Ukrainian drones struck eight tankers from Russia’s “shadow fleet” of aging vessels used to bypass sanctions that were delivering fuel to Crimea overnight.
Source: Reuters
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