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The U.S. State Department confirmed on Sunday it had withdrawn a six-month waiver that allowed Iraq to import Iranian electricity and natural gas without facing sanctions.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.