Trump Sanctions Threat Sends Oil Prices Soaring

Oil prices surged 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 Brent benchmark rose to USD 94.39 a barrel, up 61 cents or 0.65 percent, while US West Texas Intermediate crude settled at USD 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, workarounds and alternative supplies are being found while Hormuz remains constrained, said Phil Flynn, senior analyst with Price Futures Group. 'Hormuz is still a problem, but it is no longer the only story,' Flynn noted.