Oil Prices Rise as Trump Threatens Sanctions on Iran's Trading Partners
Oil prices rose on Friday after US President Donald Trump threatened economic sanctions on Iran's trading partners, raising expectations of tighter supply in the coming weeks.
The international benchmark Brent crude futures settled at $94.39 a barrel, up 61 cents or 0.65 percent, while US West Texas Intermediate crude settled at $87.06 a barrel, up 23 cents or 0.26 percent.
According to Crispus Nyaga, research analyst at Empire FX, the immediate impact on supply may be limited as Iranian exports are already heavily constrained by the US naval blockade.
However, an increase in shipping incidents and retaliation against economic sanctions could exacerbate the current situation at a time when traffic through the Strait of Hormuz remains well below normal levels, said Nyaga.