The US conducted a new wave of military strikes against Iran, targeting air defense systems, radars, and over 60 small boats belonging to Iran's paramilitary Revolutionary Guard. These strikes were in direct response to Iran's attacks on three commercial tankers in the Strait of Hormuz. One tanker, carrying Qatari natural gas, was hit off the coast of Oman and caught fire, while the other two sustained damage. The US Central Command stated these actions were taken "to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway."
Alongside the military action, the US revoked a license that had previously allowed Iran to sell oil, reinstating sanctions on its oil sales. This license was part of an interim deal that had waived sanctions for 60 days, permitting Iran to sell oil openly in US dollars for the first time in years. The US official cited Iran's unacceptable actions in the strait as the reason for revoking the license, a move Iran condemned as a violation of the interim deal.
The renewed hostilities led to a significant surge in global oil prices. Brent crude, the international benchmark, spiked over 5% and was up 6.30% to $78.83 a barrel, while West Texas Intermediate rose 6.46% to $74.99 a barrel. Analysts, like Soojin Kim from MUFG, noted that the escalation reignited concerns about supply disruptions through the Strait of Hormuz, a critical waterway for a fifth of the world's traded oil and natural gas. Ipek Ozkardeskaya from Swissquote highlighted that higher energy prices could reverse the recent easing of inflation expectations.
US President Donald Trump declared the interim agreement to pause fighting "over," although he indicated that negotiations could continue, albeit seemingly without confidence in their outcome. This statement, coupled with the military strikes and reinstated sanctions, raised fears that an extended conflict could engulf the wider Middle East and severely disrupt vital energy shipments through the Strait of Hormuz. The US and many Gulf Arab states remain firm on not allowing Iran to charge for passage through the strait, a practice Tehran has vowed to implement.
