The United States has revoked a 60-day waiver that permitted Iran to sell its oil under a memorandum of understanding, following Iranian attacks on three tankers transiting the Strait of Hormuz. The decision by the US comes as tensions escalate in the region, with Israeli warplanes conducting air raids in southern Lebanon. The attacks on the tankers, which included a Qatari-flagged LNG carrier, represent a significant breach of the recent MoU aimed at reducing hostilities and reopening the Strait to toll-free shipping. The revocation of the waiver, coupled with retaliatory US strikes on Iranian targets, suggests a return to heightened military confrontation.
Market participants are closely monitoring the implications of these developments on the “Iran Full Airspace Closure” market. Current pricing suggests an increased likelihood of a full airspace closure by Iran as tensions continue to rise. Notably, the probability of a closure by July 31 has increased to 16.5% from 8% just 24 hours ago, reflecting the heightened threat level in the Strait of Hormuz.
Key Takeaways
The revocation of the US waiver for Iranian oil sales appears to have heightened tensions, suggesting increased likelihood of further escalations.
