Oil Jumps $3 as Trump Reimposed Iran Sanctions Rattle Markets
WTI crude surged to $72 after Treasury revoked Iran's oil sanctions waiver. Stocks slipped, yields climbed, and AI chips got crushed.
Oil finally woke up. WTI crude ripped $3.45 higher to $72.00 after the US Treasury pulled the plug on Iran's sanctions waiver — a clear signal that the fragile peace deal between Washington and Tehran is coming apart at the seams. The move came after tanker attacks earlier in the session barely budged prices, but bids steadily built through the New York afternoon before the Treasury announcement lit the fuse.
Here's the tradeable context: a large convoy of Japanese ships reportedly cleared the Iran corridor just before this escalation, moving some of the last stranded oil out of the region. With that supply now freed and sanctions tightening again, the supply picture could get uglier fast. Watch the $72 level — if it holds, oil bulls have a real setup.
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Treasury yields didn't sit still either, jumping 7 basis points to 4.55% alongside the crude rally. The US dollar picked up modest ground, but equities couldn't decide what to do. The S&P 500 dipped 0.4%, and AI chip names were the real carnage — some fell upward of 10%, wiping out nearly all of June's gains. Two-way chop in AI stocks is a warning sign that this leg of the trade may be stalling out.
The macro backdrop isn't helping the bull case. The New York Fed's latest survey showed one-year inflation expectations hitting their highest level since 2023 — and notably, that's happening even as oil price expectations dropped. That means inflation pressure is broadening, not just energy-driven. A more optimistic consumer in the same survey is a small bright spot, but with yields rising and the Fed offering nothing new, don't expect a rate cut to ride to the rescue anytime soon.
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