Trump Enacts Ban on Iranian Oil, Eliminating 1.5 Million Barrels Daily from Global Supply

On July 7, 2026, President Trump reinstated extensive sanctions on Iranian oil exports, effectively removing around 1.5 million barrels of crude oil from the international market, coinciding with the current closure of the Strait of Hormuz. This combination of military actions, the closure of the shipping route, and the sanctions is causing unprecedented disruptions in the energy sector, reminiscent of the turmoil following the 2022 Russian invasion of Ukraine. While the United States is the leading oil exporter worldwide, the sudden loss of this substantial Iranian supply, along with ongoing shipping challenges, is leading to a sharp increase in prices. Experts from Reuters have cautioned that if the closure of the Strait and the sanctions persist into August, the national average for gasoline could surpass $5.25 per gallon.