Trump Announces Crushing Economic Sanctions on Iran Amid Ongoing Strait of Hormuz Tensions
Oil prices remain steady after US President Donald Trump announced stricter economic sanctions against Iran. The move comes as tensions in the Strait of Hormuz show little sign of easing.
The price of West Texas Intermediate crude futures rose 0.25% to $84.60 a barrel, while Brent crude oil rose 0.3% to $91.93 a barrel. This marks five consecutive days of gains for oil prices.
Trump threatened an 'economic D-DAY' against Iran, warning countries not to engage in business with the country. The new sanctions are expected to further disrupt global oil supplies, which have already been impacted by the ongoing conflict in the Middle East.
The Strait of Hormuz has seen a significant reduction in commercial traffic, with recent shipping data showing that only a fraction of pre-war levels are passing through the waterway. The Iran war has become a major driver of oil prices, as traders price in continued supply disruptions and a higher risk premium into crude prices.