Trump Sanctions Threat Sends Oil Prices Surging Again
US President Donald Trump has threatened economic sanctions on Iran's trading partners, sending international crude oil futures up by 0.65% to $94.39 a barrel and US West Texas Intermediate crude rising 0.26% to $87.06 a barrel.
The Brent benchmark has gained 6.39% this week while WTI has risen 5.66%, touching their highest since July 24 in the previous session, according to Reuters.
Experts believe that sanctions have been effective in bringing Iran 'to heel,' but warn that an increase in shipping incidents and retaliation could exacerbate the situation.
Pipelines, shuttles, US shale production, a recovering Venezuela, and an unconstrained UAE are all adding barrels to the market, helping to mitigate the effects of supply disruptions at the Strait of Hormuz.