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Oil Prices Spike Over 5% After Reported Attacks on Tankers Near Strait of Hormuz
Summary
Crude oil prices surged on Tuesday following reports of attacks on three commercial oil tankers in and around the Strait of Hormuz. In response, the United States has revoked a license authorizing the sale of Iranian oil and has reportedly blamed Iran for the incidents.
Oil prices experienced a significant increase of more than 5% on Tuesday amid escalating geopolitical tensions in the Middle East. The spike followed reports of attacks on three oil tankers near the vital Strait of Hormuz shipping lane. By late afternoon, Brent crude, the global benchmark, had risen 5.3% to $75.79 a barrel, while U.S. West Texas Intermediate crude increased by 5.1% to $72.04 a barrel.
The United Kingdom Maritime Trade Operations (UKMTO) agency said it had received reports about attacks on three separate vessels over a 24-hour period. According to the agency, two tankers were struck by unknown projectiles, and a third was hit by a drone. No casualties were reported from the incidents. Following the reports, the UKMTO raised its threat level for the region from "substantial" to "severe."
In response to the developments, the U.S. Treasury Department’s Office of Foreign Assets Control revoked a general license that authorized the sale of Iranian oil and petroleum products. Citing a U.S. official, both Reuters and Axios reported that the move was a direct response to the attacks, which the official blamed on Iran. The official described the actions as "unacceptable" and stated that there would be "consequences."
AdOther nations have also reacted to the events. Qatar identified one of the affected vessels as the Al-Rekayyat and condemned the attack, stating it held Iran "fully legally responsible." Saudi Arabia identified another of the vessels as a Saudi tanker named the Vijian and likewise condemned the incident. While Iran has not publicly claimed responsibility, U.S. officials cited by Axios alleged that Iran’s military had fired upon the commercial ships.
This escalation threatens a fragile interim peace deal established last month between Washington and Tehran, which had ended recent fighting and reopened the strait. In a contrasting long-term outlook released the same day, the U.S. Energy Information Administration (EIA) stated it expects global crude oil production to revert to pre-conflict averages by the end of the year, which it predicts will put downward pressure on prices in 2027.