U.S. Strikes Iranian Targets and Rescinds Oil Waivers Amid Rising Gulf Tensions

Global energy markets reacted sharply on Wednesday as the U.S. military launched powerful strikes against Iranian drone sites and port facilities in Hormozgan and Mahshahr. The action follows the targeting of three commercial vessels, including Saudi and Qatari tankers, in the Strait of Hormuz. In tandem with military action, the U.S. Treasury Department rescinded "General License X," effectively blocking all Iranian oil transactions starting July 17. The move has pushed Brent crude prices to $76.07 per barrel, the highest level since late June. In retaliation for the U.S. strikes, Iran launched attacks against 85 U.S. military installations located in Bahrain and Kuwait. Iranian officials frames the U.S. actions as a violation of a memorandum of understanding, particularly as the strikes occurred during the seven-day funeral period for Supreme Leader Ayatollah Ali Khamenei. Iran’s Foreign Ministry has stated that all diplomatic negotiations regarding a final deal are now suspended until U.S. threats cease. The escalation has drawn support from NATO, with leadership describing the U.S. strikes as a necessary response to Iranian maritime aggression. Meanwhile, the Trump administration appears to be shifting regional alliances, with reports indicating a potential deal to provide F-35 stealth fighters to Turkey to bolster a unified front against Tehran. The situation remains volatile, with concerns that a closure of the Strait of Hormuz could cause further global economic instability.