Conflict Hits Markets Again: Oil Prices Surge Following New U.S. Measures Against Iran

Global oil prices surged on Tuesday after the administration of President Donald Trump revoked a sanctions exemption that allowed limited oil transactions with the Iranian regime, following attacks on three commercial vessels operating near the Strait of Hormuz. Brent crude, the international benchmark, rose more than 5%, surpassing $75 per barrel at the close of trading, as markets reacted to rising tensions in the region.

Iran’s Deputy Foreign Minister, Kazem Gharibabadi, condemned the U.S. decision, arguing that the revocation of the exemption violated the terms of the memorandum of understanding. He also accused the White House of repeatedly violating the agreement “due to the actions of the Zionist regime in Lebanon and threatening statements against Iran,” referring to the continued presence of Israeli military forces on Lebanese territory. “Iran, while issuing a serious warning about the consequences of the United States’ breach of the agreement, will take decisive measures to safeguard its national interests and security,” Gharibabadi wrote on his X account.

The spike in prices came after the Treasury Department issued new guidelines announcing that transactions previously authorized under the sanctions waiver must be completed by July 17. Under the original agreement, the exemption allowed certain sales of Iranian oil through August 21 as part of the bilateral understanding.

The maritime incidents led the U.S. Central Command (CENTCOM) to launch retaliatory strikes against Iran, after the United Kingdom Maritime Trade Operations (UKMTO), an organization affiliated with the Royal Navy, reported on Monday that a commercial oil tanker caught fire after being struck by a projectile fired by the Islamic theocracy.

The renewed confrontation between Washington and Tehran comes as Iran continues to hold funeral ceremonies across the country for the late Ayatollah Ali Khamenei, who died during the initial attacks launched by the United States and Israel against the Iranian regime on February 28.