Iran Sanctions Loom Over Oil Markets
Oil markets are bracing for new U.S. sanctions on Iran as tensions between Washington and Tehran escalate.
The United States is preparing its toughest sanctions yet on Iran, targeting Iranian oil sales, shipping networks, financial institutions, and foreign companies that help Tehran generate revenue.
Treasury Secretary Scott Bessent will announce the new sanctions package on Monday, which could force buyers, insurers, and shipping companies to withdraw from Iranian trade.
Brent crude has risen 6.4% this week to $94.39 a barrel, while West Texas Intermediate closed at $87.06, up 5.7%, according to Reuters.
The Strait of Hormuz, the only maritime route from the Persian Gulf to the open ocean, remains near a standstill with only five commodity vessels crossing the strait on August 15.