Oil Prices Soar as Trump's Economic D-Day Campaign Takes Hold

Oil prices are nearing $100 per barrel as US President Trump's 'Economic D-Day' campaign against Iran increases geopolitical risk premia in the markets. The Strait of Hormuz has seen limited transits all week, with Brent crude at $94 per barrel.

The White House announced that it will impose sweeping penalties and 'tremendous consequences' on countries trading with Iran, targeting China's imports of Iranian oil. This move has pushed Asian LNG prices to $24 per MMBtu and VLCC freight rates to exorbitant levels.

Iraq is planning to increase its output to 8-10 million b/d within six years, while US refiners are receiving over 500,000 b/d of Venezuelan crude. The Iraqi government has also approved contracts to market crude through multiple export outlets until the end of the year.