Iran Sanctions Send Oil Prices Soaring Towards Weekly Gain

Oil prices are on track for a significant weekly gain as traders weigh the risk of further supply disruptions and possible fallout from US efforts to throttle Iran's economy. The Brent crude benchmark is trading above $93 a barrel, poised for a 6% weekly advance.

The US administration plans to target Tehran with economic measures, which could also ensnare countries that deal with the Islamic Republic, including China. Treasury Secretary Scott Bessent said the initiative will be detailed next Monday, following President Donald Trump's description of it as an 'economic D-day'.

Oil has rallied over 50% this year due to the US-Iran conflict and the Strait of Hormuz attacks. However, Chris Weston, head of research at Pepperstone Group Ltd., notes that adding sanctions on Iran could carry a degree of risk and 'certainly doesn't seem like a straightforward exercise'.

Beijing, the largest importer of Iranian oil, has said that sanctions and pressure won't work and called for a diplomatic resolution. Josh Lipsky, vice president of international economics at the Atlantic Council, expressed concerns about the potential blowback from China.