Oil prices jumped nearly 4% Tuesday evening, minutes after the US Treasury Department announced the renewal of sanctions on Iranian oil exports, according to market reports. The surge caps a volatile day that saw the Treasury first revoke export authorization, then reimpose sanctions.
The US Treasury Department renewed sanctions on Iranian oil exports Tuesday evening, triggering a nearly 4% surge in global oil prices, according to market reports. The announcement came minutes after the Treasury had revoked the earlier authorization for Iranian oil exports, as The Zioneer reported at 22:23 Jerusalem. The rapid sequence of announcements within the same hour underscores the volatility of US policy toward Iran and the sensitivity of oil markets to each shift.
The Zioneer first reported at 21:51 Jerusalem that the United States had decided to reimpose sanctions on Iranian oil, based on a single source. Successive reports from multiple newsrooms quickly confirmed the decision, with a US official confirming the formal revocation of export licenses. By 22:23 Jerusalem, the Treasury had revoked the authorization following three tanker attacks in the region. The latest move—the formal renewal of sanctions—completes a dramatic reversal of the sanctions relief that had been granted under a bilateral memorandum of understanding.
The Zioneer has reported on the volatile oil market in recent weeks, with prices swinging between $75 and $93 per barrel, driven by the back-and-forth on sanctions, diplomatic talks, and military tensions. Earlier this month, the desk reported on Iran's declaration of the Strait of Hormuz closure and a subsequent surge in oil prices. The background of the 'maximum pressure' approach versus 'maximum leniency' has framed the current policy turmoil.
It remains unclear whether the renewed sanctions represent a permanent policy shift or another temporary adjustment. The US had earlier informed Israel of its intention to strike Iran in response to the Hormuz attacks, as The Zioneer reported at 21:51 Jerusalem, but no further developments on that front have been confirmed.
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