Oil Prices Defy Sanctions and Tanker Traffic Weakness

Oil prices have shrunk despite stricter sanctions on Iran and weak tanker traffic in the Strait of Hormuz. The West Texas Intermediate (WTI) oil price is set to drop by 4.3% this week, while Brent crude has already fallen by 5.3%. According to Reuters, WTI was trading at $83.19 per barrel as of writing.

The sanctions announced by the US Treasury are considered some of the toughest in history, but they seem to have had little impact on oil prices so far. Tanker traffic in the Strait of Hormuz remains weaker than before the conflict, which might be expected to drive up prices due to supply chain disruptions.

The Trump administration has made it clear that it prefers economic pressure over negotiating with Iran. White House spokeswoman Anna Kelly stated that 'there are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran.' Operation Economic Outcast aims to sever all remaining economic ties with Iran, but China's cooperation is seen as crucial due to its status as Iran's largest trade partner.