Brent crude surges 6% above $75 after US revokes Iran oil license
Oil and equity futures swung sharply after Trump said the Iran ceasefire memorandum was "over," reviving supply fears around Iran and the Strait of Hormuz after tighter U.S. sanctions.
Oil prices extended their rally and U.S. equity futures reversed intraday after President Donald Trump said the memorandum of understanding with Iran to end the war was "over," renewing fears of fresh attacks, shipping disruption in the Strait of Hormuz, and broader market volatility. The move came 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 previously permitted Iranian crude, petrochemical, and petroleum-product transactions to a July 17 wind-down deadline. Brent crude futures rose as much as 8% to $80.09 a barrel and WTI climbed 7.5% to $75.69, while Nasdaq 100 futures erased earlier losses and turned positive, underscoring how quickly risk sentiment shifted on the geopolitical headlines.
- General License X1: An OFAC authorization allowing only limited wind-down activity for transactions that had previously been permitted under a broader Iran sanctions license.
- Strait of Hormuz: A major oil shipping chokepoint linking the Gulf to global markets, where disruptions can quickly affect global crude supply and prices.
- wind-down deadline: The cutoff date by which previously permitted transactions must be completed before tighter sanctions restrictions fully apply.