NEW YORK -- Oil prices surged more than four percent Tuesday after the United States revoked a general license that authorized the sale of Iranian crude oil.
The move followed reported attacks on vessels in the Strait of Hormuz, a critical global shipping lane. The U.S. warned that Iran's actions in the waterway were "wholly unacceptable" and would have consequences.
Brent crude settled at $74.16 a barrel and climbed further to $75.12 in post-settlement trade. U.S. West Texas Intermediate settled at $70.44 and rose to $71.49.
"This shows just how fragile the ceasefire actually is," said Ajay Parmar of ICIS. "Volatility is here to stay."
The attacks damaged a Qatari LNG carrier and a Saudi-flagged tanker. Analysts warn renewed Middle East tensions could disrupt exports and further spike prices.
Separately, Ukraine said its drones struck eight tankers from Russia's "shadow fleet" delivering fuel to Crimea.