Trump Threatens Sanctions, Oil Prices Soar Amid Tightening Supply
Oil prices rose 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 international benchmark Brent crude futures settled at $94.39 a barrel, up 61 cents or 0.65 per cent, while US West Texas Intermediate crude settled at $87.06 a barrel, up 23 cents or 0.26 per cent.
According to John Kilduff, partner with Again Capital, 'sanctions have been the only thing to bring Iran to heel.'
Crispus Nyaga, research analyst at Empire FX, noted that while the immediate impact on supply may be limited due to Iranian exports already being heavily constrained by the US naval blockade, an increase in shipping incidents and retaliation against economic sanctions could exacerbate the situation.