Brent crude surges 6% above $75 after US revokes Iran oil license

Oil prices extended their rally as Brent crude rose above $80 a barrel and WTI climbed to nearly $76 after U.S. President Donald Trump said the memorandum of understanding with Iran to end the war was "over" and threatened fresh strikes against Iranian targets. The renewed escalation added to an earlier market jolt from tighter U.S. sanctions on Iranian energy trade, after the U.S. Treasury’s Office of Foreign Assets Control revoked General License X and replaced it with General License X1, shortening the timeline for permitted Iranian crude oil, petrochemical and petroleum-product transactions to a July 17 wind-down deadline. Brent crude futures gained $5.93, or 8%, to $80.09 a barrel, the highest since June 22, while U.S. West Texas Intermediate crude futures rose $5.25, or 7.5%, to $75.69, also the highest in more than two weeks. Traders are again focusing on supply risks around the Strait of Hormuz after Iranian Press TV said the waterway would be shut if Iran is attacked. At least four oil and gas tankers have turned back from attempting to transit the strait, ship-tracking data showed. The market had fallen back to pre-war levels after the United States and Iran signed their truce last month, prompting traders to build large short positions in oil futures. Analysts said Trump’s latest comments have weakened confidence that the current 60-day truce can still turn into a lasting peace deal. HSBC, however, cut its 2026 Brent forecast to $80 a barrel from $95 on the assumption Gulf oil exports return to normal by the end of September.