Oil prices gained ground on Friday, rebounding from a sharp decline the previous day, as the United States imposed stricter sanctions on Iran and Russia, providing support to the market amid concerns over weakening demand.
Brent crude rose to approximately $70 a barrel after falling 1.5% on Thursday, while West Texas Intermediate (WTI) remained below $67. The White House’s latest move includes sanctions targeting Iran’s oil minister, along with additional restrictions on companies and vessels involved in transporting the country’s crude oil. The U.S. also tightened payment options for Russian energy exports.
Thursday’s price drop came in the wake of the International Energy Agency’s (IEA) warning that a global oil supply surplus is expected to grow, driven by an escalating trade war that is dampening demand and the resurgence of OPEC+ production. Despite Friday’s recovery, WTI is poised for an eighth consecutive weekly loss—the longest losing streak since August 2015—while Brent has seen a fourth consecutive weekly decline.
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