Oil prices surged more than 5% Tuesday after the Trump administration revoked a waiver that allowed limited Iran-related oil transactions.

The move added fresh pressure on Tehran as tensions rose following attacks involving commercial vessels near the Strait of Hormuz.

The Hill reported that crude prices jumped after the administration ended the sanctions relief, with traders reacting to concerns over possible disruptions to global energy supplies.

The waiver had allowed certain oil-related transactions involving Iran despite broader U.S. sanctions targeting its energy sector.

The administration revoked the authorization after a series of incidents involving commercial vessels near the Strait of Hormuz raised new security concerns.

The Strait of Hormuz, located between Iran and Oman, is one of the world's most important energy chokepoints.

A major share of global oil shipments passes through the narrow waterway.

Oil markets reacted quickly after the announcement.

Brent crude futures and U.S. West Texas Intermediate crude both moved sharply higher as traders weighed the potential impact on global supplies.

Reuters reported that both benchmarks gained more than 5% as investors priced in increased geopolitical risk and the possibility of further regional disruptions.

The decision reversed limited sanctions relief Washington had recently provided as part of efforts to support diplomatic engagement with Tehran.

Iran remains one of the world's largest oil producers despite years of U.S. sanctions.

Much of Iran's remaining crude exports flow to Asian buyers, particularly China.

The administration's move increases pressure on Iran's energy sector.

It also signals that sanctions relief will depend on Tehran's actions and compliance with any commitments reached with Washington.

The latest escalation has raised concerns that further tensions around the Strait of Hormuz could push oil prices even higher.

Higher crude prices could eventually increase gasoline and energy costs for consumers.

The Hill reported that investors are watching closely to see whether additional confrontations in the region could further disrupt energy markets and complicate efforts to stabilize relations between Washington and Tehran.