US Cuts Off Iranian Oil, Tightening Global Supply

The US blocked Iranian oil sales on July 7, 2026, reinstating penalties as military strikes intensify. This cuts off a backup supply source just as the shipping route through the Strait of Hormuz—which carries one-fifth of the world's oil—becomes riskier. US oil prices rose 2.5%. The trade restrictions, more than the strikes themselves, caused the price jump.