Oil rises 5% after US strikes Iran, revokes sanctions waiver over ship strikes

Three ships, including a Qatari oil tanker, were struck with unknown projectiles as they attempted to pass through the Strait of Hormuz on Tuesday. The Iranian government has not claimed responsibility for the attacks nor given any reason or justification for doing so. However, Iranian state media said at least one of the ships had ignored warnings from Iranian authorities. Qatari, Saudi and US officials have blamed Iran for the strikes, which they say violate international maritime laws guaranteeing safe passage.

The three ships were not struck all at once but over the course of a day. All three were struck while traveling closer to the Omani side of the Strait. The Omanis have proposed a temporary corridor to allow ships to travel closer to their coast line. The Iranians do not want this because it undercuts their ability to charge fees for passage through the Strait.

In response to the strikes on the ships, the US has launched another volley of attacks on Iran, targeting mostly coastal sites and military installations. Tehran has accused Washington of violating the Memorandum of Understanding (MOU) signed less than a month ago.

The US has also revoked a waiver on sanctions for the sale of Iranian oil. The fresh exchange of strike and the revocation of the waiver have increased fears that the MOU will collapse, driving up the price of oil 5% in afternoon trading.