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The United States reimposed sanctions on Iranian oil exports after three commercial vessels were struck in and around the Strait of Hormuz, escalating tensions with Tehran and triggering a sharp rise in global crude oil prices amid fears of fresh supply disruptions.
The move came as the US military launched a fresh wave of strikes on Iranian military targets, accusing Tehran of violating a fragile ceasefire agreed last month. The twin measures — renewed military action and tighter economic sanctions — have raised concerns that diplomacy between Washington and Tehran could unravel, with potentially significant consequences for global energy markets.
Brent crude, the international benchmark,
climbed 5.49 per cent to $75.94 a barrel, while US West Texas Intermediate (WTI) rose 2.84 per cent to $72.44 a barrel in early Wednesday trade. Oil had already rallied during the previous session after news of the sanctions and military strikes.
US revokes Iran oil waiver
The US Treasury withdrew a general licence issued on June 22 that had temporarily allowed the sale of Iranian crude oil, petroleum products and petrochemicals through August 21 under the interim ceasefire arrangement.
With the licence revoked, companies dealing in Iranian oil now have until July 17 to wind down transactions, effectively restoring US sanctions weeks ahead of schedule.
The decision marks a major escalation in Washington’s pressure campaign against Tehran. Oil exports remain one of Iran’s largest sources of foreign exchange, with much of its crude shipped to China despite years of Western sanctions.
A US official told Reuters the attacks on commercial shipping in the Strait of Hormuz were “wholly unacceptable” and would carry consequences, even as negotiators continued working towards a permanent agreement with Iran.
Fresh military strikes
The sanctions announcement came alongside a new round of US military strikes on Iranian targets.
US Central Command (CENTCOM) said the operation was launched after Iran allegedly attacked three commercial vessels transiting the Strait of Hormuz, describing Tehran’s actions as “a clear violation of the ceasefire.”
According to US officials, the strikes targeted Iranian air defence systems, coastal surveillance installations, surface-to-air missile batteries, anti-ship cruise missile positions and drone launch sites.
Iranian state media reported explosions in the southern port city of Sirik, on Qeshm Island, and in Bandar Abbas early Wednesday. Several people were reportedly injured after a projectile struck a commercial pier, while fishing boats caught fire following the strikes.
Tanker attacks raise alarm
The latest escalation followed reports that three commercial vessels were hit by projectiles in and near the Strait of Hormuz.
Qatar accused Iran of attacking its large liquefied natural gas (LNG) carrier Al Rekayyat, saying a drone strike caused a fire in the vessel’s engine room. The crew was reported safe and evacuated.
Maritime security sources also said a Saudi-flagged supertanker, believed to be the Wedyan, sustained damage off the coast of Oman. The cause of the incident has not yet been confirmed.
The British navy-linked United Kingdom Maritime Trade Operations (UKMTO) agency confirmed that three merchant vessels had reported being struck by unidentified projectiles over recent days.
A second US official told Reuters that preliminary assessments indicated Iran had fired at the commercial ships.
Iran denied responsibility, calling Qatar’s accusations “perplexing” and insisting it remained committed to the ceasefire while warning that commercial shipping faced risks if vessels travelled through routes not coordinated with Iranian authorities.
Strait of Hormuz back in focus
The Strait of Hormuz is among the world’s most strategically important maritime chokepoints, with nearly one-fifth of global oil and liquefied natural gas shipments passing through the narrow waterway before the conflict erupted earlier this year.
Any sustained disruption to traffic through the strait could tighten global energy supplies, increase freight costs and push oil prices significantly higher.
For India, which imports more than 85 per cent of its crude oil requirements, a prolonged rally in oil prices could increase the country’s import bill, widen the current account deficit and add to inflationary pressures.
