Oil prices rose in early Asian trading, with Brent and U.S. West Texas Intermediate each up about 3% intraday, as markets assessed renewed military exchanges between the United States and Iran and Washington's move to restore tighter restrictions on Iranian crude sales.
The reported policy step included revoking a general license that had authorized Iranian crude sales, adding uncertainty around the outlook for Iranian exports. Market focus also remained on shipping conditions in the Strait of Hormuz, which carries about 20 million barrels per day of oil and roughly a quarter of global seaborne oil trade, while alternative pipeline routes remain limited relative to normal flows.
Concerns centered on commercial vessel transit, tanker routing and safety, and the possibility of renewed supply disruption in the region. The report also said earlier expectations for additional Middle East supply and a looser market had encouraged large speculative short positions, leaving prices sensitive to short-covering when conflict-related headlines returned.
Inventory data remained part of the near-term balance picture, with traders watching for another U.S. crude stock draw after industry data and a Reuters poll pointed to an expected decline of about 2.4 million barrels for the week ended July 3. Broader market background has included stock draws and emergency reserve releases since the conflict began.