Brent oil rises over 3% as US revokes Iranian oil sales waiver after Hormuz escalation

Brent crude rose further on Wednesday after the US military carried out fresh air strikes in Iran and revoked a waiver that had allowed Tehran to sell crude on global markets, Anatoly agency reported.

The international benchmark was up more than 3.3 percent to $76.6 per barrel as of 0600GMT. Brent has surged more than 6 percent so far this week as renewed tensions around the Strait of Hormuz revived concerns over possible disruptions to global energy supplies.

The US Treasury Department said Tuesday that the Office of Foreign Assets Control (OFAC) revoked Iran-related General License X, which had authorized the production, delivery and sale of Iranian oil under Washington’s interim agreement with Tehran.

The move came after a series of recent attacks on vessels transiting the Strait of Hormuz, including a Qatari LNG carrier and a Saudi oil tanker, raising fears that shipowners and regional producers may avoid the vital waterway.

A US official told CNBC that Iran’s actions in the Strait were “wholly unacceptable” to Washington and would be met with consequences.

The renewed escalation has put the interim US-Iran peace agreement at risk and revived concerns over fresh disruptions to global energy supplies.

The Strait of Hormuz is one of the world’s most critical energy chokepoints, with large volumes of crude oil, petroleum products and liquefied natural gas passing through the narrow waterway.

The latest developments marked a sharp reversal from earlier expectations of a supply glut, after OPEC+ moved to increase production quotas and Middle Eastern producers sought to ramp up output.