Oil prices rallied sharply on Thursday after the US Treasury Department revoked the general license that had allowed the sale of Iranian crude oil.
The decision marks a significant escalation in economic pressure on Tehran, coming in the wake of Iranian attacks in the Strait of Hormuz.
An official from the US Treasury confirmed the withdrawal of the license, signaling a hardening stance on Iran's energy exports.
The market reaction was immediate, with Brent crude and WTI futures climbing as traders priced in the risk of further supply constraints.
The revocation removes a key mechanism that had previously facilitated limited Iranian oil flows, effectively tightening the global supply outlook.
Investors are now weighing the potential for broader disruptions in the Persian Gulf, particularly given the recent military tensions in the strategic waterway.