07.07.202619:23:40UTC+00Oil Prices Rise 5%

Crude oil extended its rally on Tuesday, climbing about 5% to roughly $72 per barrel as geopolitical tensions in the Middle East intensified. A U.S. official told CNBC that the Treasury Department is revoking the waiver that had allowed Iran to sell its oil, following recent attacks on tankers in the Strait of Hormuz. According to Qatar’s Ministry of Foreign Affairs, Iran attacked the Qatari LNG tanker Al-Rekayyat, and another tanker transiting the strait was reportedly hit by an unidentified projectile.

Iran’s foreign minister stated that final peace negotiations would not proceed as long as security threats continue. President Trump warned that the two countries would either reach an agreement or the U.S. would “finish the job,” reviving the prospect of military action.

Against this backdrop, Saudi Aramco reduced the official selling price of its Arab Light crude for Asian buyers by $1.10 per barrel for next month, deepening the discount to $1.50 below the regional benchmark amid softer market conditions.