Oil Prices Rise as Trump Denies Easing Iran Sanctions
Oil prices rose on Wednesday after US President Donald Trump denied that he would ease sanctions on Iran, despite previous reports suggesting otherwise. The Brent futures November contract, which is set to expire today, gained 71 cents, or 0.69%, to $103.30 a barrel by 0408 GMT. The December contract also rose 35 cents to $96.51.
The increase in oil prices follows a recovery in crude supply from the Middle East, which had fallen after the US-Israeli war with Iran began in late February. However, Saudi Arabia's resumption of oil tanker loadings from its Red Sea port of Yanbu has helped regional exports rebound to 16.328 million barrels per day, their highest level since the conflict started.
Trump's denial of easing sanctions on Iran is a major factor in maintaining a geopolitical risk premium in oil prices, according to Sugandha Sachdeva, founder of SS WealthStreet. She notes that improving supplies could cap further gains, but renewed disruption or escalation in tensions could trigger another rally.