Trump Sanctions Threat Sends Oil Prices Soaring

Oil prices have risen following US President Donald Trump's threat to impose economic sanctions on Iran's trading partners, raising concerns about potential supply disruptions.

The Brent benchmark settled at $94.39 a barrel, up 61 cents or 0.65 percent, while US West Texas Intermediate crude CLc1 settled at $87.06 a barrel, up 23 cents or 0.26 percent.

Analysts say the sanctions could exacerbate the current situation in the Strait of Hormuz, where traffic remains below normal levels due to a naval blockade imposed by the US.

However, some experts argue that workarounds and alternative supplies are being found, with pipelines, shuttles, US shale production, and recovering Venezuelan oil adding barrels to the market.