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WTI rebounds as US revokes Iran oil sanctions waiver amid strikes

WTI was up more than 3.5% near $74.50 as the sanctions waiver for legal Iranian oil exports was revoked, with permitted shipments set to wind down by July 17.

Reported · Written up by our desk · Major Pairs

WTI crude traded near $74.50 on Wednesday, rising more than 3.5% as an escalation in US-Iran strikes around the Strait of Hormuz reignited fears over supply risks. Traders said the rebound, which follows a late-June floor near $68.00, reflects a shift from selling peace to buying war risk as President Trump described the June Versailles agreement as over while talks continue.

According to FXStreet, Tehran hit three tankers transiting the strait between Monday and Tuesday, and Washington revoked the sanctions waiver that had supported legal Iranian oil exports. The US answered through Central Command (CENTCOM) with strikes on more than 80 targets, including air defenses and anti-ship missile batteries, while Iranian state-adjacent media said the Bushehr nuclear plant was not damaged and warned of retaliation against regional US bases.

The outlet also pointed to a faster breakdown in negotiations and ceasefire timing, noting earlier pauses lasted longer than the current cycle, with repeated claims of additional hits on US-linked facilities in Bahrain and Kuwait. FXStreet said physical tightening is layered on top of fear, because transactions allowed under the old license must wind down by July 17, which could pull Iranian barrels from the market as maritime risk is assessed as severe.

FXStreet added that the market rally appears capped by technical levels, with the Wednesday rebound stalling below $76.00 under a 200-day exponential moving average near $77.5, while the 50-day EMA sits above $81.0. It also referenced OPEC+ raising August output targets by 188,000 barrels per day, noting the effect has been overshadowed by renewed risk premium tied to the tanker lane between Bandar Abbas and the Omani coast.

Latest closeWTI crude $81.23 ▼1.7%

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