US Revokes Iranian Oil Licenses as Military Strikes Resume, Tightening Crude Supply

Washington revoked Iranian oil export authorization on July 7, 2026, reinstituting sanctions ahead of fresh military strikes. The move removes a marginal supply cushion precisely as shipping risk through the Strait of Hormuz—which carries roughly one-fifth of global seaborne crude—rises sharply. US crude benchmarks jumped 2.5% as traders repriced both geopolitical tail risk and confirmed physical supply constraints. The sanctions reinstatement, not the strikes alone, explains most of the oil price move.