Story
Oil Prices Hold Near One-Month Highs as US Announces New Sanctions on Iran
Summary
Crude oil benchmarks remained stable near recent highs after U.S. President Donald Trump announced plans for additional sanctions against Iran, intensifying a standoff that has already disrupted global energy supplies.
Oil prices held steady near one-month highs in early Asian trading on Thursday, following an announcement from U.S. President Donald Trump that Washington will impose additional, stricter economic sanctions on Iran. The news supported a recent rally in crude markets, which have been buoyed by escalating geopolitical tensions in the Middle East.
US Announces Stricter Sanctions
President Trump stated that Washington will impose more severe economic restrictions against Iran, though he did not provide specific details about what the new measures would entail, according to a report from Investing.com. He described the plan as potentially “the most crushing economic operation ever taken against any country” and called on U.S. allies to join the sanctions effort.
The announcement comes on top of existing U.S. sanctions targeting Iran's oil exports and a naval blockade, which have been central to the ongoing conflict between the two nations.
Market Impact
The prospect of further pressure on Iran helped crude benchmarks maintain a five-day winning streak. As of 20:25 ET (00:25 GMT), prices were reported as follows:
Ad- Brent oil futures, the international benchmark, rose 0.25% to $91.85 a barrel.
- West Texas Intermediate (WTI) crude futures increased 0.15% to $84.52 a barrel.
Context: Strait of Hormuz Standoff
Energy markets remain on edge due to the protracted standoff in the Strait of Hormuz, a critical chokepoint for about 20% of the world's crude oil supplies. In response to U.S. actions, Iran has effectively blocked the waterway for most of the year, causing major disruptions.
Recent shipping data cited in the report indicates that commercial traffic through the strait is still at a fraction of its pre-war levels. While President Trump reiterated claims that the U.S. maintains full control of the waterway and that talks could resume, Iran has denied any dialogue has occurred. Tehran has demanded that Washington first fulfill the conditions of a June memorandum of understanding, which recently lapsed.
Read next
More on Commodities
European Gas Prices Climb on Low Storage and ECB Inflation Warnings
Wholesale natural gas prices in Europe and the UK rose on Wednesday, driven by critically low storage levels ahead of winter and warnings from the European Central Bank about energy-fueled inflation.
Equinor to Boost LNG Supply to 15 Million Tons by Early 2030s, Targeting Asian Demand
The Norwegian energy major plans to expand its liquefied natural gas portfolio to 10-15 million metric tons per year to meet growing demand in Europe and Asia, diversifying its supply sources with a significant focus on U.S. exports.
Japan Gas Association Endorses Government's Emergency LNG Pact with Malaysia's Petronas
The head of the Japan Gas Association has voiced support for a new government agreement with Malaysia's Petronas to secure emergency liquefied natural gas supplies, calling it a valuable step for the nation's energy security.
US Crude Stockpiles Decline Less Than Expected, Fuel Inventories Rise
U.S. crude oil inventories fell modestly for the week ending Sept. 11, missing analyst forecasts, while gasoline and distillate stockpiles posted surprise builds, according to the latest EIA data.