US-Iran tensions: US hits Iran with renewed oil sanctions after fresh tanker strikes

Oil prices climbed sharply in early Asian trading on Wednesday after renewed military strikes involving Iran reignited concerns over the security of the Strait of Hormuz, one of the world's most important energy chokepoints.

As of 8:15 am (Tokyo time on Wednesday, July 8, 2026), market data showed Brent crude futures at $74.16 a barrel, up $2.17 (+3.01%), WTI at $72.43 a barrel, up $1.99 (+2.83%); and Murban crude at $68.97 a barrel, up $2.29 (+3.43%).

US natural gas also inched higher at $3.271 per million British thermal units, up 0.18%.

The rally followed reports of multiple explosions in southern Iran, including near Bandar Abbas, Qeshm Island and Sirik, shortly after the US announced what it described as "powerful" strikes against Iranian military targets following attacks on a Qatar vessel transiting Hormuz.

The developments heightened fears that fighting could spill further into the Strait of Hormuz, through which roughly one-fifth of the world's oil supply passes.

Iran has denied responsbility for the attack on the Qatari LNG tanker transiting off the coast of Oman.

Doha had earlier blamed the attack on Iran. US officials also accused Tehran of violating a ceasefire framework reached last month and endangering civilian shipping.

The US military then launched "powerful" strikes was in retaliation for what it described as Iranian attacks on commercial shipping. The move has sharply escalated tensions around one of the world's most critical energy chokepoint.

According to US officials, the strikes targeted Iranian military infrastructure, including air defense systems, coastal surveillance sites, anti-ship missile positions, drone launch facilities and other assets believed capable of threatening maritime traffic through the narrow waterway linking the Arabian Gulf with the Gulf of Oman.

Multiple explosions were reported across southern Iran near the strategic Strait of Hormuz late Tuesday after the United States announced it had launched what it described as "powerful" military strikes in retaliation for Iranian attacks on commercial shipping, sharply escalating tensions around one of the world's most critical energy chokepoints.

Iran's state broadcaster IRIB reported that six explosions were heard on Qeshm Island, seven explosions struck the coastal city of Sirik, while additional blasts were reported in the major port city of Bandar Abbas, the headquarters of Iran's navy and a key base for the Islamic Revolutionary Guard Corps (IRGC).

Iranian media did not immediately provide casualty figures or confirm the targets that had been hit.

The US Treasury Department on Tuesday revoked a licence that temporarily lifted oil sanctions on Iran, calling Tehran's actions in the Strait of Hormuz "wholly unacceptable."

"Iran's actions in the Strait were wholly unacceptable to the United States and will be met with consequences," a US official told AFP, after attacks on tankers in the key waterway.

The waiver announced in June had originally allowed the Islamic republic to produce, sell and deliver crude oil and related products through August 21.

Qatar summoned Iran's deputy ambassador on Tuesday to lodge a complaint after an attack on a Qatari LNG tanker as it was transiting off the coast of Oman, which Doha had earlier blamed on Iran.

The Qatari foreign ministry said in a statement that it handed a diplomatic note to the "deputy ambassador", demanding an explanation for the incident and calling on Iran to "immediately cease any practices undermining regional security and to refrain from endangering the safety of international shipping and global energy supplies".

The United Arab Emirates has condemned in the strongest terms the hostile Iranian attack which targeted Qatar’s Al Rakeyyat vessel while transiting near the Strait of Hormuz.

In a statement, the Ministry of Foreign Affairs (MoFA) reaffirmed that the attack constitutes a grave threat to the safety and security of international navigation and represents a dangerous escalation which undermines the security and stability of one of the most critical waterways in the world.

The body of Iran's supreme leader Ali Khamenei arrived at Najaf International airport in Iraq on Tuesday night, Iraqi state media reported, ahead of funeral processions in the country's holy cities.

Iraqi state TV broadcasted the arrival of the Mahan Air flight that brought Khamenei's coffin to Najaf airport, where Iranian President Masoud Pezeshkian and senior Iraqi officials, including Prime Minister Ali Al Zaidi, were there to receive the remains of the late supreme leader who was killed on the first day of the US-Iran conflict.

The US sale of F-35 stealth warplanes to Turkey would "destroy" the balance of power in the Middle East, Israeli Prime Minister Benjamin Netanyahu said Tuesday.

"It would destroy the power balance in the Middle East, because Turkey, I think, has aggressive aspirations," Netanyahu told CNN, adding: "When you give them that power, you're going to see aggression in its wake."

A third tanker was hit in the Strait of Hormuz in the past 24 hours, British maritime security agency UKMTO reported on Tuesday, after Qatar blamed Iran for an attack on one of its ships.

"UKMTO has received a report of a further incident involving a tanker transiting the Strait of Hormuz. The tanker was struck by an unknown Uncrewed Aerial Vehicle (UAV) and has sustained minor structural damage. No casualties or environmental impact reported," it said in a post on X.

A second tanker was hit in the Strait of Hormuz in the past 24 hours, British maritime security agency UKMTO said on Tuesday, after earlier reporting another vessel attack in the night.

"UKMTO has received a report of an incident involving a tanker transiting the Strait of Hormuz. The tanker was struck by an unidentified projectile and is believed to have structural damage. No casualties or environmental impact reported," it said. Qatar said one of its vessels had been struck by Iran after UKMTO reported the first tanker attack.

Targeting the Qatari gas tanker Al Rekayyat while it was transiting near the Strait of Hormuz constitutes an unacceptable attack on the security and safety of international navigation and global energy supplies, and a grave and explicit violation of international law, particularly the rules guaranteeing freedom of navigation and safe passage through international waterways.

We call on Iran to immediately cease all actions that undermine regional security or threaten international maritime navigation, and to refrain from jeopardising global energy supplies and the interests of the countries of the region in pursuit of narrow objectives. We hold Iran fully legally responsible for this attack and for any resulting damage or consequences.

Map shows where a tanker was struck while travelling southward near the coast of Oman, causing a fire on board.

Israeli Foreign Minister Gideon Saar confirmed on Tuesday that the next round of talks with Lebanon will take place in Rome, as the two countries work to build on a framework agreement reached last month with US backing.

"Less than two weeks ago, Israel, Lebanon and the United States reached a historic framework agreement. These talks are due to continue next week in Rome, Italy," Saar said during a joint press conference with his German counterpart Johann Wadephul in Jerusalem, adding that "Israel has no territorial ambitions in Lebanon."

Syrian President Ahmed al-Sharaa said Tuesday that he wants France to be a primary partner for Damascus, which he said has regained its role as a transit hub after the Strait of Hormuz closure.

"After the Strait of Hormuz crisis, the world realised the value of safe and stable corridors... here the importance of Syrian geography is highlighted, which today has regained its vital role as an indispensable link in the global corridors market, and we want France to be our primary partner in this path," Sharaa said in an economic forum with his French counterpart Emmanuel Macron and representatives from both countries.

Several people were injured after Israeli settlers attacked the Hawara area, east of Masafer Yatta and south of Hebron, in the occupied West Bank, according to the Wafa news agency.

Local sources told Wafa that settlers assaulted residents, attacked homes and used pepper spray during the incident.

The sources also said Israeli soldiers arrested an elderly resident, identified as Ibrahim Ismail Al Jabour, from the Hawara area. The arrest took place during the settler attack.

Iranian Foreign Minister Abbas Araghchi said negotiations on a final agreement with the US “will not commence” if threats continue, citing paragraph 13 of the memorandum of understanding between the two sides.

In a post on X, Araghchi said “millions of proud Iranians” had gathered for funeral ceremonies honouring slain Supreme Leader Ayatollah Ali Khamenei, adding that neither the public nor Iran’s armed forces were deterred by threats.

“Paragraph 13 of the MoU is clear: negotiations on the final deal will not commence if threats continue. Honour your signature,” he said.

President Donald Trump arrived in Turkey for a Nato summit overshadowed by disagreements within the alliance over Iran, uncertainty over Russia's next moves in Ukraine and renewed questions about Washington's commitment to European security.

The meeting comes at a pivotal moment for the 32-member alliance. Nato leaders hope to project unity after months of intensified fighting in Ukraine and growing security concerns across Europe, but diplomats say Trump is arriving frustrated over defence spending, burden-sharing and the pace of peace efforts.

Iranian state broadcaster IRIB, citing unnamed sources, reported that the oil tanker was attacked after attempting to pass through the Omani route in the Strait of Hormuz with support from the US Navy.

The broadcaster said the vessel was targeted after allegedly ignoring repeated warnings, while noting that no Iranian official has confirmed or denied the report.

Iran has previously warned ships against using the southern route through Omani waters in the Strait of Hormuz, saying all maritime movements through the strategic waterway must be coordinated with its military.

US officials have blamed Iran for an attack on a tanker off the coast of Oman that caused a fire after the vessel was struck by an “unknown projectile”.

Speaking to Axios, two US officials said Iran’s military fired at least two missiles at commercial ships travelling through the Strait of Hormuz.

One official said a second vessel was also hit, with both ships suffering significant damage but no casualties reported.

The body of Iran’s late Supreme Leader Ali Khamenei, along with those of his family members, has been brought to the Holy Jamkaran Mosque in Qom, where mourners are gathering for farewell ceremonies and funeral prayers.

The ceremony is expected to draw large crowds as supporters pay their respects ahead of the burial rites.

Saudi Arabia has cut its crude oil prices for August by $11 a barrel, marking the steepest reduction in 26 years as competition among major oil producers intensifies.

The latest cut follows a $6-per-barrel reduction for July after the Strait of Hormuz reopened, pushing oil prices back to levels seen before February 28. Saudi Arabia’s Arab Light crude price for Asian buyers is now $1.50 below the Oman/Dubai average.

The move comes after Opec+ and its allies, including Russia, agreed to raise output targets by 188,000 barrels per day from August, following similar production increases in June and July. Brent crude futures slipped 47 cents to $71.70 a barrel on Monday evening (IST).

NATO leaders will highlight rising defence spending at a summit in Ankara, Turkey, as European allies seek to ease tensions with US President Donald Trump over burden-sharing and the war with Iran.

NATO chief Mark Rutte said members were making “transformational progress” towards their pledge to raise security spending to 5% of GDP. European nations are also preparing a possible naval mission near the Strait of Hormuz while seeking clarity on the US-Iran situation.

The summit comes as Europe takes on a bigger role in its own defence and support for Ukraine, with allies committing to maintain at least €70 billion ($80 billion) in annual military aid for Kyiv in 2026 and 2027. Ukrainian President Volodymyr Zelensky is expected to push for stronger air defence support and meet Trump in Ankara.

An "unknown projectile" struck and caused a fire on an oil tanker off the coast of Oman near the Strait of Hormuz on Monday, British maritime security agency UKMTO said.

The incident occurred near one of the world's most important energy shipping routes, despite a ceasefire between the United States and Iran and ongoing efforts to secure a lasting peace agreement.

The United Kingdom Maritime Trade Operations (UKMTO) said the incident took place eight nautical miles east of Limah, Oman.

"A tanker has reported being hit by an unknown projectile on the port side causing a fire, whilst travelling southbound," UKMTO said in a post on X.

The agency said there were no reports of casualties or environmental damage.

"Vessels are advised to transit with caution and report any suspicious activity to UKMTO," the agency added, saying authorities were investigating.

French President Emmanuel Macron arrived Monday in Syria, making him the first major western leader to visit the war-torn country since the ouster of Bashar Al Assad in 2024.

Ukrainian President Volodymyr Zelenskyy visited in April but Macron is the first leader from western Europe or North America to do so.

The French president's visit comes during a period of relative calm in the Middle East after the monthlong war in Iran and Lebanon. He will travel next to Ankara, Turkey, for the NATO summit, where Syrian President Ahmad al-Sharaa is also expected to attend and hold a high-profile meeting with US President Donald Trump.

Syria's state-run SANA news agency said Macron would visit with a business delegation to discuss regional security as well as business and investment opportunities.

Macron was greeted at Damascus airport by Syrian Foreign Minister Asaad Al Shibani.

Macron hosted al-Sharaa in Paris in May 2025, where he urged European and US leaders to lift longstanding sanctions on Damascus. Most of those sanctions had since been lifted.

Lebanese state media said an Israeli strike on a car in the country's south on Monday killed four people, including three women, despite a ceasefire between Israel and Hezbollah.

Lebanon's official National News Agency (NNA) said a school principal, her mother, a foreign female domestic worker and a male Syrian worker were killed when an Israeli drone targeted their car as they returned from inspecting their family home in Nabatieh al-Fawqa.

The Israeli military said that it identified "four suspects" approaching the area its forces occupy in southern Lebanon who posed a threat and so "conducted a precise strike in order to remove the threat".

Trump said Washington remains open to a nuclear deal with Iran but warned that military force would follow if negotiations fail. He said the US objective is to prevent Tehran from obtaining a nuclear weapon, not regime change.

Trump claimed recent US strikes had severely weakened Iran’s military capabilities and said diplomacy was still the preferred path. He warned that the US could target key Iranian infrastructure if needed, while expressing hope for a negotiated settlement.

The body of Iran's late supreme leader Ayatollah Ali Khamenei arrived in the holy city of Qom on Monday evening ahead of a planned procession the following day, state television reported.

"The body of the martyred leader has arrived in Qom," south of the capital Tehran, state television said on social media, alongside footage showing a helicopter carrying Khamenei's body landing in the city.

Day 129: Body of Khamenei arrives in Qom ahead of procession

Day 128: Massive turnout at Khamenei funeral

Day 127: Massive turnout at Khamenei funeral

Day 126: Netanyahu, Trump agree to meet in US 'soon'

Day 125: Iran denounces US-led security summit of 12 nations

Day 124: Iran says Qatar talks with US on war MoU concluded

Day 123: Iran says US blockade stopped oil exports completely

Day 122: IRGC Navy spokesperson Akbarzadeh dies in car 'mishap'

Day 121: Iran warns against attacks from regional territory

Day 120: US–Iran ceasefire under strain as drones target Bahrain