Oil Prices Stabilize Near One-Month Highs as Trump Threatens More Sanctions on Iran

Oil prices stabilized near one-month highs in early Asian trading Thursday after U.S. President Donald Trump threatened to impose tougher economic restrictions on Iran. The move signals a potentially prolonged standoff in the critical Strait of Hormuz, keeping a floor under crude prices which have now risen for five consecutive sessions.

As of 8:25 PM ET (00:25 GMT), Brent crude futures, the international benchmark, were up 0.25% at $91.85 per barrel. West Texas Intermediate (WTI) crude futures, the U.S. benchmark, rose 0.15% to trade at $84.52 per barrel.

U.S. Escalates Economic Pressure

President Trump announced that Washington would implement more severe economic measures against Tehran, though he did not provide specific details. He called on U.S. allies to join the effort and warned other nations against conducting business with Iran, describing the plan as potentially "the most devastating economic action ever taken against any country," according to Investing.com.

The threat comes on top of existing U.S. sanctions targeting Iran's oil exports and a maritime blockade that has been in place amid the ongoing conflict. Markets are now bracing for an extended period of heightened geopolitical risk in the Middle East.

Strait of Hormuz Remains a Chokepoint

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The standoff has severely impacted global energy logistics. Iran has responded to U.S. military actions by effectively blockading the Strait of Hormuz for much of the year, a chokepoint for at least 20% of the world's crude oil supply.

While U.S. officials have repeatedly claimed the waterway is open for passage, the latest shipping data reportedly shows that the volume of commercial vessels transiting the strait remains significantly below pre-conflict levels. This discrepancy continues to fuel uncertainty over supply security.

Diplomatic Impasse

President Trump reiterated on Wednesday that the U.S. maintains full control over the strait, adding that negotiations with Iran could resume "at some point." However, Tehran has largely denied any dialogue with Washington.

Iranian officials have insisted that the U.S. must first comply with conditions laid out in a June memorandum of understanding before any progress can be made. That agreement expired earlier this week, and neither side has given a clear indication that it will be renewed, further complicating diplomatic efforts.