Oil prices saw an uptick as the United States introduced new sanctions targeting Iranian oil, with U.S. President Donald Trump indicating that trade tariffs remained a looming threat. Brent crude rose above $75 per barrel following a modest gain on Monday, while West Texas Intermediate (WTI) hovered near $71.
The U.S. imposed fresh restrictions on brokers, ships, and individuals it claims are linked to illicit Iranian oil shipments. Although the sanctions were relatively limited, they added to a growing list of measures against Tehran’s oil exports.
Crude oil markets have faced volatility since the start of the year. Prices initially surged due to cold weather and a prior round of U.S. sanctions against Iran. However, gains were later tempered as President Trump took office and introduced plans for tariffs. Trump confirmed in a recent press conference that tariffs on Canada and Mexico, which could potentially affect the energy sector, are scheduled to take effect next month.
Soni Kumari, a commodity strategist at ANZ Group Holdings in Bengaluru, India, stated, “The market is keeping a close eye on fresh U.S. sanctions against Iran, but the fallout remains uncertain.” She added that while there are concerns surrounding supply disruptions, factors like ongoing global issues may limit significant price increases.
In addition to Iranian sanctions, oil traders are grappling with other supply challenges. OPEC and its allies are expected to delay any further increases in output. Meanwhile, Iraq is seeking to resume pipeline flows from Kurdistan, and discussions surrounding a potential resolution to the ongoing war in Ukraine could impact Russian crude shipments.
Despite efforts by the Trump administration to revive a “maximum pressure” campaign on Iran, there are broader indications that the U.S. prefers lower crude prices. This is evident from U.S. efforts to boost domestic production and calls for OPEC+ to cut prices.
Later today, the International Energy Week conference in London will feature key industry figures, including Fatih Birol from the International Energy Agency, who will provide further insights on the global energy outlook.
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