The price for a barrel of Brent crude oil rose to nearly $76 after the Trump administration revoked Iran's oil license, a nearly 6% increase. This economic maneuver coincided with new U.S. military strikes against Iran, launched in retaliation for alleged attacks on three vessels in the Strait of Hormuz. Iran's Revolutionary Guards responded by targeting U.S. military sites in Bahrain and Kuwait on July 8.
U.S. Central Command (CENTCOM) stated the strikes aimed to "impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway." CENTCOM described Iran’s actions as "unwarranted, dangerous, and a clear violation of the ceasefire." The Islamic Revolutionary Guard Corps reported a joint missile and drone operation against U.S. military sites in Bandar Salman, Bahrain's Fifth Naval District, and Ali Al Salem Air Base in Kuwait. They also claimed to have shot down a U.S. MQ9 drone that attempted to interfere.
The Strait of Hormuz, a critical choke point for global capital, carried about 20% of the world's oil before the war. Its control and security remain central to imperial strategy. The U.S. had issued a waiver for Iran to sell oil on the global market as part of a preliminary peace agreement signed last month. This waiver was a major concession, briefly offering Iran an economic lifeline.
The Imperial Hand
The revocation of this oil license on July 7 stripped Iran of that economic relief. The peace deal, intended to end a war that began on Feb. 28, showed signs of strain soon after its finalization. Multiple rounds of U.S. military strikes on Iran have occurred since the memorandum of understanding (MOU) was signed, all in response to alleged attacks on ships in the strait. U.S. strikes on June 26 and June 27 targeted Iranian military infrastructure, including air defense and drone storage sites. CENTCOM did not provide details on the targets of the July 7 strikes.
President Donald Trump issued a stark warning after last month's strikes. He threatened that the U.S. might be "forced to militarily complete the job that we very successfully started." Trump declared on Truth Social on June 27, "If that happens, the Islamic Republic of Iran will no longer exist!" This rhetoric underscores the state's role in protecting accumulated wealth and projecting power through military force.
Failed Diplomacy, Enduring Conflict
Iran's top joint military command, Khatam al-Anbiya Central Headquarters, condemned the U.S. strikes as a "blatant act of aggression." They threatened a "crushing response" and warned against U.S. interference in the management of the strait. Parliament Speaker Mohammad Baqer Qalibaf, a top Iranian negotiator, accused the U.S. of breaching the ceasefire agreement, which has been in place since April. He cited not only the latest U.S. military strikes but also renewed oil sanctions, violations of Iranian "adjustments" in the Strait of Hormuz, and Israeli attacks against Lebanon. "The era of bullying and extortion is over," Qalibaf stated in a post on X. "We don't fold."
Despite these escalating tit-for-tat strikes, peace talks proceeded last week. The two sides conducted indirect negotiations through mediators in Doha, Qatar. Trump told reporters that negotiators "had very good meetings." However, the Trump administration is now taking a firmer approach, combining economic warfare with military action against Tehran. This demonstrates how reform efforts and diplomatic overtures within the existing system often serve to manage contradictions without addressing the fundamental drive for capital accumulation and imperial dominance.