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Brent jumps as US tightens Iran oil sanctions and markets eye Fed minutes

Brent surged from about $72 to briefly above $79 after US strikes and the US Treasury withdrew an Iran oil waiver, while the dollar firmed and the yen weakened.

Reported · Written up by our desk · Major Pairs

Markets weighed two sources of uncertainty, with Brent crude rebounding toward the $80 level while investors looked ahead to the release of the June FOMC minutes for signals on Chair Kevin Warsh’s policy thinking, Action Forex reported.

The oil move lifted the dollar, and it also sparked currency shifts including a stronger kiwi after the Reserve Bank of New Zealand raised rates, while the yen fell back as concerns about currency intervention faded.

Brent’s initial push came after US strikes targeting Iranian objectives in retaliation for attacks on commercial shipping through the Strait of Hormuz, and the rise was reinforced by short covering after the prior dip toward pre-war levels linked to expanding OPEC+ supply and improved Gulf shipping conditions.

The market re-priced geopolitical risk further when the US Treasury withdrew a waiver that had allowed Iran to continue selling oil, the first concrete sanctions tightening since the ceasefire framework was set, Action Forex said. Traders stopped short of assuming a full return to conflict, with expectations hinging on whether additional sanctions, military moves, or regional shipping disruptions follow, or if negotiations remain possible despite Trump’s “over” comment on the Iran ceasefire at NATO.

Latest closeWTI crude $81.23 ▼1.7%|Brent $85.92 ▼2.8%

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