Iran Sanctions Threaten to Send Oil Prices Soaring Again
Oil prices are on course to book their second consecutive weekly gain as tensions in the Middle East escalate amid US threats of unprecedented sanctions against Iran. The price climb follows a statement by President Trump that the US is preparing 'Economic Warfare and Isolation on an unprecedented scale' against Iran, and a warning from Treasury Secretary Scott Bessent that the regime will be collapsed.
The Brent crude benchmark was trading at $93.50 per barrel, while West Texas Intermediate (WTI) was trading at $86.43 per barrel. Analysts warn that it is unclear whether China would provide support for the US campaign against Iran, given its significant trade ties with the country and its past criticism of sanctions as ineffective.
IG analyst Tony Sycamore noted that both sides are 'dug in but lacking the luxury of time to play the waiting game' against a backdrop of crude prices grinding higher. BMI and Fitch Ratings have also revised their oil price outlook, citing strong upside potential driven by developments in the Persian Gulf war.