Crude oil climbed back above $72 per barrel as geopolitical tensions in the Middle East resurfaced, reigniting concerns over global energy supplies.
Key developments
• The US revoked a recently issued waiver that had allowed Iran to export crude under the June agreement aimed at reopening the Strait of Hormuz.
• The decision followed Washington's accusation that Iran was behind recent attacks on commercial vessels transiting the strategic waterway.
• The US Treasury ordered all transactions under the waiver to cease from 17 July, tightening restrictions on Iranian oil exports.
• At the same time, the US military launched a new wave of air strikes against Iranian targets in response to the attacks on shipping in the Strait of Hormuz.
Market impact
The renewed escalation has pushed geopolitical risk back into the spotlight, lifting oil prices after last week's pullback. Traders are once again pricing in the possibility of tighter global crude supplies, while higher energy prices could reinforce inflation concerns and complicate the outlook for central bank policy in the months ahead.