US launches strikes on Iran and revokes oil export license after Hormuz tanker attacks; crude jumps over 3%

US strikes and license revocation

The United States launched what it called "a series of potent attacks" against targets in southern Iran on Tuesday, after three commercial vessels were hit in the Strait of Hormuz. Centcom said the Iranian attacks were "unjustified, dangerous and constituted a flagrant violation of the ceasefire." Simultaneously, the Treasury Department revoked General License X, the temporary authorization that had allowed Iran to produce, sell and deliver crude oil and related products under the June 21 understanding. The license was replaced with General License X1, which provides for an orderly wind-down of previously permitted transactions. A Treasury official told AFP that Iran's actions in the strait were "totally unacceptable" and would have consequences.

The Hormuz attacks

Iranian state media reported multiple explosions near the strait: six on Qeshm island, seven in the city of Sirik, and several more in the port of Bandar Abbas. Among the vessels struck were a Qatari LNG carrier, identified as the 'Al Rekayyat', and a Saudi oil tanker. Qatar's government called the incident "an unacceptable attack against the security of international maritime navigation, the security of global energy supply and a grave and manifest violation of international law." Saudi Arabia also blamed Tehran. No crew casualties were reported, but the attacks caused material damage. Iran dismissed the accusations as "questionable" and insisted that safe transit through Hormuz cannot be guaranteed without coordination with Iranian authorities.

An unacceptable attack against the security of international maritime navigation, the security of global energy supply and a grave and manifest violation of international law.

Oil markets react

Crude prices jumped immediately after the announcements. US benchmark West Texas Intermediate rose more than 2.9% to $72.49 a barrel, while Brent crude, the European reference, climbed over 3% to $76 a barrel. One report noted a spike of more than 5% at one point. The Strait of Hormuz is a critical chokepoint for global oil and gas shipments, and any disruption raises fears of supply constraints.

Diplomatic standoff

The escalation threatens the fragile ceasefire and the 60-day negotiation framework established by the June 17 memorandum of understanding. Iranian Foreign Minister Abbas Araqchi warned that talks on a final agreement would not begin while US threats continue, citing paragraph 13 of the MoU. "Respect your signature," he wrote on social media. President Trump had said a day earlier that the US would "finish the job" if no deal is reached, boasting that American forces could knock down Iran's bridges and cut off its energy supply "in an hour." Iran's Supreme National Security Council secretary, Baqer Zolqader, demanded Trump speak with respect or face a response "in another language."

The negotiations on the final agreement will not begin while the threats continue. Respect your signature.

We can knock down their bridges in an hour. We can cut off their energy supply, all those beautiful, big, modern plants they built.

What comes next

The Treasury set a deadline of July 17 for Iran to complete any oil sales already approved under the revoked license. The original permit had authorized transactions until August 21, the end of the 60-day negotiation window. The memorandum also envisions a gradual lifting of sanctions, unfreezing of Iranian funds, and a reconstruction fund of at least $300 billion, but Washington insists these benefits are phased and conditional on Tehran's cooperation. With both sides exchanging threats and military strikes, the path to a final accord looks increasingly uncertain.