Oil Prices Ease from One-Month High but Set for Weekly Gain on U.S.-Iran Tensions

Oil prices pulled back from one-month highs in Asian trading on Friday but remained on course for a second consecutive week of strong gains. The market's upward momentum is fueled by escalating geopolitical tensions after the United States announced plans for its most severe economic sanctions yet against Iran.

Market Snapshot

According to data from Investing.com, key crude benchmarks saw a slight downturn by 00:38 GMT:

• Brent crude futures, the international benchmark, declined by 0.5% to $93.29 a barrel.
• West Texas Intermediate (WTI) crude futures, the U.S. benchmark, fell 0.6% to $84.34 a barrel.

Despite the session's dip, Brent is on track to close the week with a gain of more than 5%. This marks its second straight week of significant advances, reflecting underlying supply concerns in the market.

U.S. Toughens Sanctions on Iran

Ad

The primary driver for the weekly price strength is the ongoing standoff between the U.S. and Iran. U.S. President Donald Trump has vowed to impose strict new economic sanctions to pressure Tehran into accepting a nuclear deal. U.S. Treasury Secretary Scott Bessent reiterated this stance on Thursday, stating Iran would face the "toughest sanctions in history."

It was not immediately clear what the new sanctions will entail, as the U.S. has already imposed substantial restrictions on Iran’s oil exports. Iran and China, a major buyer of its crude, have largely rejected the U.S. threats, according to the source report.

Strait of Hormuz Disruption

Tensions remain focused on the Strait of Hormuz, a critical waterway for global oil shipments. The U.S. has maintained a naval blockade in the area, and shipping data indicates that commercial traffic through the chokepoint is at a fraction of its pre-war levels.

Iran has signaled it will keep the waterway closed until the U.S. adheres to the terms of a preliminary peace deal signed in June. The continued disruption in this key maritime route adds a significant risk premium to oil prices, supporting the market despite broader economic headwinds.