Oil prices spiked more than 5% on Tuesday after the U.S. revoked a license authorizing the sale of Iranian oil and was said to vow a response against Tehran following reports of attacks on three oil tankers in and around the Strait of Hormuz.
The attacks reportedly happened over the previous 24 hours around the Strait of Hormuz. Two tankers were hit by unknown projectiles while a third was hit by a drone.
West Texas Intermediate crude jumped 5.1% or more than $3.38 to close at $72.04 a barrel on the New York Mercantile Exchange.
Brent crude finished up 5.3% or about $3.70 at $75.79 pr barrel.
Some of the price gain was due to the U.S. Treasury Department’s Office of Foreign Assets Control on Tuesday revoking the general license authorizing the production, delivery, and sale of crude oil, petrochemical products, and petroleum products of Iranian origin.
Both Reuters and Axios, citing a U.S. official, said the move was in response to the new attacks. The official blamed Iran, calling the actions “unacceptable” and promising “consequences” while adding that negotiations continued in “good faith,” according to the news outlets.
Natural gas prices also rose on Tuesday, finishing up $0.027 or 0.83% at $3.272 MMBtu.
Tuesday produced a day of gains for most Oklahoma energy companies including a 5% increase for Devon Energy and 4% boosts for Empire Petroleum Corp. and Helmerich and Payne.
Big drops for USA Rare Earth at 8% and Stardust Power at 6%.
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