Oil gains as US revokes license for Iranian sales after tanker attacks

Investing.com -- Oil futures were trading over 3% higher midday on Tuesday after the United States revoked a general license that authorized the sale of Iranian oil on Tuesday, following attacks on three tankers in the Strait of Hormuz in recent days. A U.S. official described to Reuters Iran's actions in the strategic waterway as "wholly unacceptable" and said they would be met with consequences.

The British navy-affiliated agency UKMTO reported that three tankers were struck by unknown projectiles in and near the Strait of Hormuz recently. Tehran has not commented on the incidents, and no group has claimed responsibility for the attacks. Saudi Arabia- and Qatar-flagged tankers reported getting hit earlier on Tuesday.

A U.S. official said negotiators continue to work in good faith toward a final agreement with Iran despite the latest escalation.

The attacks and Washington's response threaten a fragile diplomatic understanding between the two countries, raising the risk that further retaliation could derail negotiations over a broader agreement. Both sides had been working toward a deal that included limits on Iran's nuclear program and relief from some sanctions, including restrictions on oil exports.

The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world's most important energy chokepoints. Roughly a fifth of global oil consumption and large volumes of liquefied natural gas shipments pass through the strait each day.

Oil exports remain a critical source of revenue for Iran, providing billions of dollars in hard currency that help fund government spending and support an economy weakened by years of U.S. sanctions. Despite restrictions, Tehran has managed to expand shipments in recent years, largely to China. Any renewed effort to curb those exports could put additional pressure on Iran's finances.

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