Oil prices jumped sharply Tuesday evening after the United States revoked easing of sanctions on Iran following continued incidents in the Strait of Hormuz, according to i24NEWS. A US official told Reuters that Iran's actions are unacceptable and will have consequences.
Oil prices surged sharply at 22:32 Jerusalem, building on a 4% jump at 22:27, after the United States revoked the easing of sanctions on Iran over continued incidents in the Strait of Hormuz, i24NEWS reported. A US official told Reuters that Iran's actions are 'unacceptable' and 'will have consequences.'
The thread began at 21:51 Jerusalem, when initial reports from a single source indicated the US had decided to reimpose sanctions on Iranian oil. A US official confirmed the revocation of export licenses, and subsequent reports detailed the cancelation of the sanctions relief agreed under the memorandum of understanding. By 22:27, oil prices had surged 4% as the US Treasury formally renewed sanctions. The current sharp move at 22:32 represents a further escalation.
The Strait of Hormuz, a strategic waterway handling roughly 20% of global petroleum traffic, has been the site of escalating US-Iranian maritime incidents in recent weeks, including a series of tanker attacks and an Iranian declaration of closure that earlier sent prices soaring, as The Zioneer reported on June 11. The sanctions revocation marks a return to the 'maximum pressure' policy after a brief period of eased restrictions, as previously reported.
No further official statements from the US Treasury or the Iranian government have been reported as of this writing.
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