Oil Prices Soar on Ongoing US-Iran Tensions and Threat of Economic Sanctions

Oil prices surged for a second straight week due to ongoing tensions between the US and Iran over control of the Strait of Hormuz. The global oil benchmark, Brent, rose 0.2% to settle at $93.93 a barrel, while WTI slipped 0.2% to settle at $86.64 a barrel.

The standoff between the two countries showed little sign of easing, with US President Donald Trump threatening to impose strict new economic sanctions against Iran. In an interview on CNBC, US Treasury Secretary Scott Bessent said that these sanctions would be 'the greatest coordinated economic isolation in the history of the world.'

Iran has largely dismissed US threats, and Chinese buyers have also signaled they will continue to purchase Iranian crude despite potential penalties. However, analysts at Deutsche Bank warn that recent disruptions to regional oil supplies could persist due to ongoing Middle East tensions.