Iran Sanctions Loom Over Oil Markets Amid Disrupted Shipping Through Strait of Hormuz

The oil market is bracing for the impact of new U.S. sanctions on Iran, which are set to be announced on Monday.

The sanctions, which target Iranian entities and those that continue trading with Tehran, could remove additional Iranian barrels from the market or trigger retaliation against regional energy shipments.

Brent crude has risen 6.4% this week, closing at $94.39 a barrel on Friday, as concerns grow about the potential disruption to oil supplies.

The Strait of Hormuz, which provides the only maritime route from the Persian Gulf to the open ocean, has seen traffic stall in recent days, with only five commodity vessels crossing the strait on August 15 and no tracked vessels completing the passage the following day.