Iran Sanctions Threat Sparks Oil Price Surge

The price of oil has increased as traders weigh the US threat to impose unprecedented economic measures on Iran, which is in its sixth month of conflict.

Brent crude settled above $88 a barrel, marking a roughly 6% gain for the week. Treasury Secretary Scott Bessent stated that the US will apply economic pressure on Iran 'like the world has never seen,' with more to be announced next week.

The conflict has disrupted oil output and exports from top OPEC producers in the Persian Gulf, leading to a 40% surge in oil futures this year. The International Energy Agency forecasts a deeper supply shortfall this quarter and sees the deficit in 2026 expanding to its widest in five years.